The accelerated post-crisis global growth has put upward pressure on international prices, a situation that impacts the local market, generating variations in the costs of goods and services.
SANTO DOMINGO.– As the fastest growing sector in the country this year, construction registered a historic variation in its price index, according to Analytica's executive summary for the ninth month of the year.
Comparing the period from 2015-2019 with June 2021 shows an increase almost four times above its average, with a nearly 20% increase in housing construction costs in the last year
Specifically, and evaluating consumer prices, inflation went from 2% to 9%, while product prices registered a variation from 3% to 10%.
In that sense, “housing construction costs have increased by almost 20% in the last 12 months alone, and even more since the beginning of the crisis,” when the average inflation rate was 4% due to the pandemic, the strategic firm's publication indicates.
The accelerated post-crisis global growth has put upward pressure on international prices, a situation that impacts the local market, generating variations in the costs of goods and services.
With this approach, Analytica, an economic analysis strategy firm, produced a comparative report in September analyzing the country's historical inflation and the current situation following the COVID-19 pandemic.
According to the document, consumer inflation, for the first time since the implementation of strategies aimed at maintaining price stability, exceeded 10% in 2021, impacting economic sectors and, above all, altering the population's consumption pattern.
According to Analytica, the change in consumers drove a high demand for products and services, which in turn led to price increases due to shortages and rising raw material costs.
The economic effects of the coronavirus pandemic plunged the Dominican economy into a recession due to a lack of dynamism in various economic sectors. Its impact affected decision-making and directly impacted people's out-of-pocket spending, according to a press release.
