Indicates that the variation of the consumer price index was 0.73%
(BCRD) reported that the monthly variation of the consumer price index (CPI) in the month of December 2021 was 0.73%.

The Central Bank of the Dominican Republic (BCRD) He reported that the monthly variation of consumer price index (CPI) in the month of December 2021 was 0.73%, placing year-on-year inflation, measured from December 2020 to December 2021, at 8.50%.

Likewise, the BCRD indicated that annualized core inflation stood at 6.87% in December 2021, explaining that this indicator excludes some items whose prices tend to be volatile or do not normally respond to monetary conditions.

In this sense, underlying inflation isolates the behavior of certain foods with great variability in their prices, as well as fuels, managed and transportation services, alcoholic beverages and tobacco, thus allowing clearer signals to be extracted for driving. of monetary policy.

The institution reiterates that the evolution of domestic prices has been impacted by the situation of international commercial markets in which bottlenecks have been generated in supply chains, combined with substantial increases in container rates and global freight rates.

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Likewise, other external factors have had an impact, such as the increase in the prices of food supplies and other raw materials. Variation by groups The BCRD reports that the analysis of the results of the general CPI during the month of December 2021 shows that the groups with the highest incidence were Food and Non-Alcoholic Beverages (0.81%), Transportation (0.80%), and Housing (0.90 %), explaining together 63% of the inflation of the last month of last year 2021.

In addition, the groups Miscellaneous Goods and Services (0.85%) and Restaurants and Hotels (0.94%) contributed. The CPI for the Food and Non-Alcoholic Beverages group registered a variation of 0.81% in December 2021, explained by increases in the prices of coffee (9.10%), eggs (3.57%), green bananas (3.32%), potatoes (7.86 %), sour lemons (25.94%), green bananas (3.42%), pork (2.00%), tomato paste (3.03%), red onions (3.16%), avocados (7.01%), beef ( 1.24%), pumpkin (7.32%), cod (1.72%) and carrots (7.45%) among others.

However, some food goods recorded price drops such as green pigeon peas (-19.24%) and peppers (-2.96%). The inflation of the Transportation group in the month of December 2021 was 0.80%.

It is mainly due to increases in the prices of air tickets (14.65%), liquefied gas (LPG) for vehicles (2.78%), regular gasoline (0.27%) and diesel (1.27%), due to the weekly adjustments provided by the Ministry of Industry, Commerce and Mipymes (MICM), in compliance with Law 112-00 on Hydrocarbons. In addition, the increase in the prices of land transportation services in motoconcho (1.52%), in taxi (3.10%), in public car (0.65%), automobiles (0.61%) and vehicle repair services (0.53%) contributed. ).

The price index corresponding to the Housing group reflected a variation of 0.90% in December 2021, explained to a greater extent by the 2.78% rise in the price of liquefied petroleum gas for domestic use (LPG), the housing rental service (0.58%) and some home maintenance and repair items (0.96%), such as painting (1.35%) and home maintenance services (0.75%). As for the CPI for the Miscellaneous Goods and Services group, the BCRD indicates that it grew 0.85% in December 2021, mainly due to price increases in personal care services, such as men’s haircuts (2.22%), hair washing and styling (1.23%), in personal care items such as toilet paper (0.71%), disposable diapers (0.54%), deodorants (0.49%), toothpaste (0.33%), sanitary napkins (0.52%) and razor (0.52%), in addition to vehicle insurance (1.06%).

The 0.94% growth in the price index of the Restaurants and Hotels group basically responds to the increase in the prices of some food services prepared outside the home, such as the dish of the day (0.91%), the chicken service (1.44%) , food services with accompaniment (0.52%), sandwiches (0.75%), empanadas (1.24%) and pizza (0.80%).

The BCRD highlights that the rise in prices observed in the CPI for this group is the result of increases in basic inputs for its preparation, including meat, oils, rice, bread, sausages, cheese, gas , among others, that directly affect the increase in the prices of these food services.

Index of tradable and non-tradable goods The CPI for tradable goods, those that can be exported and imported free of restrictions, registered a growth of 0.88% in the month of December 2021, mainly due to increases in air ticket prices , fuel, tourist packages, automobiles, paints and food goods such as coffee, eggs, green bananas, potatoes, sour lemons, green bananas, beef and pork, tomato paste, avocados, pumpkin, cod, carrots and bottled beer.

The CPI for tradable goods accumulated a variation of 10.49% throughout the year 2021. For its part, the price index for non-tradable goods and services, those that by their nature can only be marketed within the economy that produces them or are subject to measures that limit their imports, varied 0.57% in December 2021.

The same is due to the price increases registered in some meals prepared outside the home, such as daily dish, chicken service, food service with garnish and in some ground transportation services, housing rental and maintenance, domestic service, personal care services, vehicle insurance, vehicle repair services and red onions, closing the year 2021 with an accumulated inflation of 6.54%. Inflation by quintiles and geographic regions The analysis of the price indices by socioeconomic strata shows that the quintiles with the lowest incomes registered variations of 0.88% in quintile 1, 0.78% in quintile 2 and 0.73% in quintile 3.

As for the quintiles with the highest income (4 and 5), they registered inflation rates of 0.72% and 0.74%, respectively.

In annualized terms, it shows that the quintiles with the lowest income (1, 2 and 3) experienced slightly higher inflation rates than the rest of the quintiles (4 and 5), as a result of the growth in the prices of food goods during the year 2021 Indeed, quintile 1 accumulated an annual variation of 8.71%, quintile 2 of 8.77% and quintile 3 of 8.49%, while quintiles 4 and 5 grew 8.17% and 8.10% respectively, mainly due to the accumulated increase in the price of fuels during 2021. The results of the CPI by geographic region show that the consumer price index of the Ozama region, which includes the National District and the Santo Domingo province, varied 0.79%, the North region 0.64%, the region This 0.64% and the South region 0.79%.

The higher inflation in the Ozama and Sur regions is explained by the combination of the higher incidence of the CPI of the Transport, Food and Non-Alcoholic Beverages and Housing groups in both geographical areas. Regarding annual inflation, the rates were 7.63% in the Ozama region, 9.08% in the North, 8.66% in the East and 9.98% in the South.

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