Chicken, coffee, and the daily special are driving up prices

Dominicans felt the impact of rising food and basic services costs in January. The Central Bank of the Dominican Republic (BCRD) reported that the Consumer Price Index (CPI) rose 0.40% in January 2026, with increases concentrated mainly in food, restaurants, and education.

Although year-on-year inflation stood at 4.98%, within the target range of 4.0% ± 1.0%, the breakdown by groups reveals that some everyday consumer products rose above the overall average.

Chicken and groceries are driving inflation

The Food and Non-Alcoholic Beverages group increased by 0.68% and was responsible for almost half (45.68%) of the month’s inflation. The main driver was fresh chicken, one of the most significant items in the average household’s shopping basket, whose price rose as demand exceeded available production.

Also registering increases were coffee, chicken broth, soft drinks, cassava, oranges, sour lemons, and plantains in their various varieties.

The Central Bank explained that these increases are partly due to the lagged effects of adverse weather conditions, including rainfall from Tropical Storm Melissa, which affected the production and marketing of agricultural goods at the end of last year.

However, some agricultural products, such as chili peppers, tomatoes, eggplants, lettuce, onions, and green pigeon peas, declined in price, preventing the group’s inflation from rising further.

Eating out also costs more.

Eating out also became more expensive in January. The Restaurants and Hotels group showed a 1.13% increase, driven by higher prices for the daily special, chicken service, and side-dish groceries.

According to the Central Bank of the Dominican Republic (BCRD), the increase in these services is due to higher costs of basic inputs used in their preparation, which are ultimately passed on to the final consumer.

Education starts the year with price increases

The Education sector saw the largest percentage increase, at 1.79%, due to the start of the first academic term at universities. Increases were recorded in tuition, registration fees, and monthly payments, as well as higher prices for language learning services.

Housing and personal care also rise

The Miscellaneous Goods and Services group increased by 0.34%, due to higher prices for personal care items and services. Meanwhile, Housing rose by 0.26%, mainly due to increases in rent and paint prices.

Transport lowers and cushions the impact

In contrast, the Transportation group recorded a 0.28% decline, driven by lower airfares. This decrease helped to moderate the growth of the overall index, although it was partially offset by increases in vehicle repairs and passenger road transport.

Those most affected: low-income households

The impact was not the same for everyone. The lowest income quintiles (1, 2, and 3) experienced inflation rates of 0.58%, 0.59%, and 0.53%, respectively, due to the greater share of their spending on food.

In contrast, the fifth quintile—the highest income bracket—registered only a 0.09% change, driven by a drop in airfares, which is a more significant factor in that segment.

In regional terms, the East region showed the greatest variation (0.75%), while the Ozama region—National District and Santo Domingo province—registered the least (0.25%).

Signals for monetary policy

Underlying year-on-year inflation stood at 4.89%, also within the target range, which, according to the Central Bank, provides clearer signals for monetary policy by excluding volatile prices such as fresh food, fuels, and regulated tariffs.