Food prices lead January inflation rise in Dominican Republic

The Dominican Republic’s Central Bank has reported a 0.4% monthly inflation rate for January, elevating the annual inflation figure to 4.98%. This sustained inflationary pattern continues to operate within the institution’s established target corridor of 4.0% ± 1.0% for an unprecedented 32nd consecutive month.

The primary catalyst for January’s price escalation emerged from the food and non-alcoholic beverage sector, which experienced a 0.68% increase and contributed nearly half (45.7%) of the overall monthly inflation. Significant supplementary pressures originated from restaurants and hotels (1.13%), education services (1.79%), miscellaneous goods and services (0.34%), and housing costs (0.26%).

A notable mitigating factor arrived through transportation expenses, which declined by 0.28% during the same period, providing partial counterbalance to the overall Consumer Price Index ascent.

Monetary authorities highlighted core inflation—excluding volatile components such as food items, fuels, regulated services, alcohol, and tobacco—which maintained a year-on-year rate of 4.89%. This metric, closely monitored by policymakers for underlying inflation trends, demonstrates the economy’s persistent but controlled inflationary environment. The annual inflation closure at 4.95% for 2025 confirms the Dominican Republic’s continued macroeconomic stability within its targeted parameters.