Inflation

Inflation in the Dominican Republic, in general terms, has maintained a downward trend over the last two decades (see graphics). The period between 1995-2001 is the period that recorded the lowest prices since the 1980s, thanks to microeconomic programs that were implemented by the government at that time to stabilize the national economy. 

Inflation in the DR

 Inflation in the DR – December Measure of Annual % – Source: Central Bank of the Dominican Republic

The high level of inflation recorded in 2002 to 2004 (an annual average of 27%), was in part due to the crisis which faced the country as a result of the fraudulent bankruptcy of one of the main commercial banks (Baninter), which in turn resulted in strong uncertainty among economic agents and the population in general, and then in the late implementation of a series of financial measures which were ill-advised. The national economy became caught up in an inflationary spiral that was only stopped by the intervention of international organizations and the wave of confidence generated by the new government of Dr. Leonel Fernández.

Currently, price levels have recovered the stability that was enjoyed in the second half of the nineties, and it has annual average figures of less than 10%, situating itself once again at normal levels for a developing country in Latin America and the Caribbean.

Related Links:

• Price Statistics from the Central Bank of the Dominican Republic
• Publications from the Central Bank of the Dominican Republic
• National Price Stabilization Institute