Santo Domingo.- The drought has increased food prices 7.8% over the past year, although the Dominican Republic’s Central Bank doesn’t observe significant inflationary pressures in the medium term, according to data in its Monetary Policy Report published recently.
The rise in food products is well above the inflationary average of the last year, of 2.48% accumulated in twelve months, and the Bank considers that the main incidence factor is related to the dry spell that has affected agro producers since 2018 and that has reduced the supply of farm goods.
“However, no significant inflationary pressures are anticipated in the medium term, as the effects of adverse climatic conditions on agricultural goods prices dissipate and pressures on the side of aggregate demand remain moderate,” says the Monetary Policy Report corresponding to November, which projects inflation at around 4% for 2020.