The Central Bank of the Dominican Republic (BCRD) reported that the Customer Value Index (CPI) recorded a replacement of 0. 78% 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 noteworthy adjustments in certain agricultural products that tend to be volatile, as well as alcoholic beverages, tobacco, fuels and controlled and shipping services, allowing the extraction of more accurate signals 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% replenishment in the Transport Group’s 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 passenger cars (1. 97%) urban and urban areas. 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%), motorbikes (1. 07%) vehicle repair facilities (0. 47%).
Regarding fuel values, which are adjusted weekly through the Industry, Commerce and MSM branch (MICM) in accordance with the Hydrocarbons Law 112-00, the liquefied fuel (LPG) for automobiles is higher than 4, 73%, while the average value of gasoline, and premium, in August remained practically unchanged from JulyArray partially mitigating the group’s performance.
The BCRD report also indicates that the expansion of the CPI of 0. 72% in the organization of non-alcoholic food and beverages is a reaction to increases in the value of high-weight parts in the circle of the family basket and that in some cases their plantations have been affected. by the passage of Storms Isaac and Laura all over the country, such as green bananas (19. 04%), ripe bananas (17. 12%), onions (6. 70%), eggs (3. 33%), green peas (5. 98%), rice (0. 0 5 3%), purified water (1. 40%), red beans (2. 37%), pumpkin (9. 41%), green bananas (1. 41%), potatoes (2. 81%), tomato concentrate (1. 44%) milk powder (0. 66%), on the contrary, new birds (-10. 41%) lawyers (-12. 37%) significant declines, partially offsetting the organization’s rise.
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 construction of the IPC of the Education Group rose by 0. 77%, under the typical seasonal behavior at this time due to schooling. %), secondary education (2. 42%) preschool (1. 71%).
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 non-alcoholic foods and beverages, which has the greatest relative importance in the basket of this geographical area, has undergone a negative variation. Inflation in the East is due to the high expansion of the transport service in this region.
The replacement in the CPI across the socioeconomic stratum in August 2020 shows rates in the first 4 quintiles: quintile 1, the lowest expenditure, highest in 0. 84%, 0. 88% in quintile 2, 0, 85% in quintile 3 and 0. 82% in quintile 4, explained through the occurrence of the group of foods and non-alcoholic beverages, which has a greater relative importance in their 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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