The monthly variation of the consumer price index (CPI) was 0.45% in September 2021, reported the Central Bank of the Dominican Republic (BCRD).
Thus, accumulated inflation for the first nine months of the year (January-September) stood at 5.88% and the interannual, measured from September 2020 to September 2021, fell to 7.74%, after having reached a maximum point of 10.48% in May of this year.
The group with the greatest contribution to the growth of the CPI in September was Food and Non-Alcoholic Beverages, varying 0.57%. Other groups that recorded price increases that contributed to the month’s inflation were Restaurants and Hotels (0.91%), Miscellaneous Goods and Services (0.46%), Education (1.65%), Housing (0.30%), Transportation (0.16%) and Furniture and household items (0.57%).
Seen in detail, onion rose 18.36%, garlic (13.06%), soft drinks (3.13%), beef (3.41%), water bread (3.52%), sobado bread (1.62%), rice (0.35% ), tomatoes (4.53%), soybean oil (0.78%), aubergine (6.69%) and green pigeon peas (3.35%). Meanwhile, those that fell in price were: Green bananas (-4.47%), avocados (-11.39%), green bananas (-3.41%) and ripe bananas (-4.25%).
The official report by the issuer indicates that the CPI of the Restaurants and Hotels group grew 0.91% in September 2021, as a result of the increases in the prices of meals served outside the home as the dish of the day (0.89%), chicken service (1.35%), food service with accompaniment (0.90%) and empanadas (1.35%).
He said that the increase that continues to register the price index of that group, responds to the price increases of the basic inputs for its preparation, including meats, oils, rice, breads, sausages, cheese, among others, that directly affect the increase in the prices of these services.
Regarding the growth of 0.46% verified in the CPI of the Miscellaneous Goods and Services group, it is mainly explained by the aPrice increases for personal care services, such as men’s haircuts (1.37%), hair washing and styling (0.31%), and personal care items (0.36%).
The monthly report of the BCRD establishes that the Education price index registered an increase of 1.65% in September compared to August 2021, reflecting the increases in private school enrollment and some university tuition fees, which are seasonally registered in the month of September. In this sense, the cost of primary education varied 1.97%, secondary 2.45% and preschool 2.42%, while university education increased 0.99%. Other components of school spending that registered price increases were books (0.58%) and school transportation (25.96%).
The monthly report of the BCRD explains that inflationary dynamics continues to be affected by temporary shocks of external origin, related to the increase in prices in the international markets of food supplies, oil and other raw materials. Likewise, the distortions in the supply chains, the rise in the costs of containers and global freight have impacted on inflation.
The price behavior report indicates that monthly core inflation stood at 0.59% in September 2021. This indicator excludes some items whose prices tend to be volatile or do not normally respond to monetary conditions.
In this vein, underlying inflation isolates the behavior of certain foods with great variability in their prices, as well as fuels, managed and transport services, alcoholic beverages and tobacco, thus allowing the extraction of clearer signals for the conduct of monetary policy.