SANTO DOMINGO. - The Central Bank of the Dominican Republic (BCRD ) reported that the Consumer Price Index (CPI) registered a monthly variation of 0.21% in June 2025. With this result, the year-on-year inflation rate measured from June 2024 to June 2025 stood at 3.56%, remaining within the target range of 4.0% ± 1.0% for the last 26 months, that is, since May 2023.
The governing body points out that this level of year-on-year inflation is among the lowest in non-dollarized economies in Latin America.
Regarding monthly core inflation, the report indicates that it was 0.28% in June 2025. Thus, year-on-year core inflation stood at 4.15%, remaining within the target range of 4.0% ± 1.0% set by the Central Bank. This indicator provides clearer signals for monetary policy decisions, as it excludes certain items that do not typically reflect liquidity conditions in the economy, such as food with highly volatile prices, fuels, and services with regulated prices like electricity and transportation, as well as alcoholic beverages and tobacco.
Variation by Group:
The Central Bank of the Dominican Republic (BCRD) indicates that the comparative analysis of June with May 2025 reveals that the 0.21% inflation rate continues to be mitigated by price reductions observed for the third consecutive month in the Food and Non-Alcoholic Beverages group, whose variations were -0.17% in April, -0.16% in May, and -0.02% in June. In contrast, increases were observed in the Miscellaneous Goods and Services (0.64%), Transportation (0.30%), Restaurants and Hotels (0.31%), Housing (0.18%), and Health (0.33%) groups.
Regarding the -0.02% change recorded in the Food and Non-Alcoholic Beverages category, the one with the greatest weight in the household basket, the Central Bank indicates that this is mainly due to decreases in products such as avocados, green and ripe plantains, limes, chili peppers, potatoes, garlic, among others. It is important to note that the reduction in this group was not more pronounced due to the price increase observed in fresh chicken.
The price index for the Miscellaneous Goods and Services group showed inflation of 0.64%, driven by price increases in some services and personal care items. Meanwhile, the Transportation category reflected a rate of 0.30%, resulting from increases in airfares, vehicle repair services, and road passenger transport, such as motorcycle taxi fares and intercity bus fares. It is worth noting that the recent increases in diesel and Liquefied Petroleum Gas (LPG) prices had a minimal impact on the June CPI, as they only applied to the last three days of the month: Saturday the 28th, Sunday the 29th, and Monday the 30th. The full effect of this adjustment, if these prices remain in place, would be seen in July 2025.
The Consumer Price Index (CPI) for Restaurants and Hotels showed a variation of 0.31%, explained by the increase in prices for food services prepared outside the home. Meanwhile, the Housing group registered a variation of 0.18% due to increases in rental services and liquefied gas for domestic use. As for the Health group, it reflected inflation of 0.33%, associated with price increases in pharmaceutical products, particularly antihypertensives.
Inflation of Tradable and Non-Tradable Goods:
The Central Bank of the Dominican Republic (BCRD) report indicates that the Consumer Price Index (CPI) for tradable goods experienced a variation of 0.06% in June 2025, primarily due to price increases in airfares, tour packages, and some food items. The monthly variation of the index for non-tradable goods and services was 0.35%.
Inflation by Geographic Area:
The Central Bank reports that inflation by geographic region in June, compared to May 2025, shows that the price index for the Ozama region, which includes the National District, Santo Domingo province, and the East region, experienced a variation of 0.21%; while the North or Cibao region saw a 0.14% increase, and the South region a 0.33% increase. The lower rate of variation in the North region is mainly due to the impact of the Food and Non-Alcoholic Beverages group, driven by price reductions in products such as green plantains and avocados. Conversely, in the South region, the increase in the price of fresh chicken offset the downward trend in this group, resulting in higher inflation in that geographic area.
Inflation by Quintiles:
The monetary authority concludes that the price indices by socioeconomic strata showed inflation rates of 0.14% in quintiles 1 and 2 and 0.15% in quintiles 3 and 4. Quintile 5, meanwhile, showed a variation of 0.23%. The higher rate recorded in quintile 5 is due to the impact of the Transportation group, driven by increases in airfares and vehicle repair services. Additionally, the rise in the prices of tour packages contributed to higher inflation in this socioeconomic stratum.
