Inter-annual inflation in the Dominican Republic was contained at 3.46 per cent in June, thus remaining below the target range of 4.0 per cent ± 1.0 per cent for the seventh consecutive month.

The country is reporting that monthly inflation variation was 0.48 per cent.

Additionally, the Dominican Department of Economy, Planning, and Development is reporting that underlying inflation stood at 3.98 per cent in June, which is 1.35 percentage points lower than the rate recorded in the same month of 2023.

The groups that contributed most to the monthly increase in the general price level in June were food and non-alcoholic beverages, with a monthly variation of 0.75 per cent and an impact of 0.19 per cent; transportation (variation of 0.61 per cent and impact of 0.11 per cent); and miscellaneous goods and services (variation of 0.63 per cent and impact of 0.07 per cent).

Inflationary pressures are expected to remain low in the domestic market with an average projection of 3.50 per cent according to the updated macroeconomic framework for June 2024.

At the same time, the Dominican peso depreciated by 7.0 per cent against the US dollar on an inter-annual basis, reaching an exchange rate of 58.99 pesos per dollar. The note also indicates that the real exchange rate index depreciated at an inter-annual rate of 6.5 per cent.