The Central Bank of the Dominican Republic (BCRD) reported that the Customer Value Index (CPI) recorded a 0. 78% replacement in August to July 2020, recording cumulative inflation for the January-August era of 3. 12%.
With this result, year-on-year inflation measured from August 2019 to August 2020 reached 4. 80%, remaining within the target diversity set in the financial programme of 4. 0% – 1. 0%.
The BCRD report found that annualized underlying inflation was 4. 24%, it should be noted that this indicator isolates creditworthy adjustments in certain agricultural products that tend to be volatile, as well as alcoholic beverages, tobacco, fuels, and controlled and shipping services, allowing more accurate signals to be extracted for the conduct of financial policy.
The publication of the financial institution explains that the equipment with the highest contribution to inflation in August 2020 was maritime transport (1. 51%), food and non-alcoholic beverages (0. 72%) housing (1. 02%). To a lesser extent, adjustments to the organization’s fitness (0. 91%), various goods and (0. 63%) schooling (0. 77%) have had an impact.
It adds that the 1. 51% replacement in the Transport Group CPI in August 2020 is basically in line with the audited tariff accumulations at unionized bus facilities (7. 20%), in motor trade unions (7. 17%), public cars (1. 97%) and city. buses (2. 10%), which still reflect the staggered effect of fuel accumulation in May to July; in addition, there were value increases in airfare (12. 37%), motorcycles (1. 07%) vehicle repair facilities (0. 47%).
As for fuel values, which are adjusted weekly through the Industry, Trade and MSM (MICM) branch under the Hydrocarbons Act 112-00, liquefied fuel (LPG) for automobiles is more than 4. 73%, while the average value of gasoline, and premium, in August remained virtually unchanged from JulyArray, partially mitigating the group’s behavior.
The BCRD report also indicates that the 0. 72% expansion in the CPI of the non-alcoholic food and beverage organization responds to increases in heavy part vouchers in the family basket circle and that in some cases its plantations have been affected. by the passage of Storms Isaac and Laura all over the country, as green bananas (19. 04%), ripe bananas (17. 12%), onions (6. 70%), eggs (3. 33%), guandu (5. 98%), rice (0. 53%), purified water (1. 40%), red beans (2. 37%), zucchini (9. 41%) Arsenal green bananas (1. 41%), potatoes (2. 81%), tomato paste (1. 44%) milk powder (0. 66%) )). By contrast, new birds (-10. 41%) and avocados (-12. 37%) recorded price drops, partially offsetting the organization’s increase.
The 1. 02% replenishment reflected in the Housing Group index is explained almost by the accumulation of 4. 73% in the value of liquefied petroleum fuel (LPG) for domestic use and 1. 22% in the value of paint, while the rental service recorded a replenishment (0. 04%). %).
As for the Health Group’s CPI, it rose to 0. 91% in August 2020 compared to July, mainly due to increases in the value of antihypertensives (1. 59%), hospitalizations (1. 03%) laboratory research (1. 28%).
The monthly publication of the financial institution adds that the IPC of the Education Group is higher by 0. 77%, under the typical seasonality behavior at this time due to schooling. ) preschool (1. 71%) Increase.
The low expansion of this organization in August 2020 responds that some personal schools, institutes that teach language courses and universities, have implemented discounts on their rates to convert the modality of the existing virtual program, as an official measure through the Ministry of Education for Prevention against the spread of coronavirus (COVID-19) in the country, in this sense, in this sense , the burden of university schooling fell (0. 78%).
The August CPI report shows that monthly inflation for tradable goods, which can be exported and imported without restriction, was 1. 24% in August.
While the CPI of non-tradable goods and services, these, by their nature, may be marketed within the economy that produces them or are subject to measures restricting their imports, has a value of more than 0. 30%.
Analysis of indexes by geographic region shows that inflation in the Ozama region, which includes the National District and the province of Santo Domingo, 0. 83%, in the North Region or Cibao 0. 80%, the Eastern Region 1. 01% and the Southern Region 0. 33%.
The less pronounced expansion of the CPI in the Southern region is due to the group of food and non-alcoholic beverages, the most relatively important in the basket of this geographical area, recorded negative variation. Inflation in the East is due to the high expansion of the transport service in this region.
The replacement in the CPI through the socioeconomic stratum in August 2020 shows rates in the first 4 quintiles: quintile 1, the lowest, highest expenditure to 0. 84%, 0. 88% in quintile 2, 0. 85% in quintile 3 and 0. 82% in quintile 4, explained through the occurrence of the food and non-alcoholic beverage group , which has a greater relative importance in its baskets.
The behaviour of quintile five (0. 66%), the largest spender, basically responds to the uptick in airfares, which is partially offset by the minimisation of fuel costs in August compared to July 2020.
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