SANTO DOMINGO.-The Central Bank of the Dominican Republic reports that the Consumer Price Index (CPI) registered a monthly variation of 0.38% in July 2025. As for year-on-year inflation, it stood at 3.40% in July 2025, which, when compared to the 3.56% observed at the end of June, resulted in a decrease of 0.16 percentage points.
The monetary authority highlights that inflation has remained within the target range of 4.0% ± 1.0% for the past 27 months and is among the lowest in non-dollarized economies in Latin America.
The report indicates that core monthly inflation was 0.30% in July, while the year-on-year rate was 4.19% for the same month, also within the target range of 4.0% ± 1.0%. This indicator provides clearer signals for monetary policy decisions because it excludes certain items that are not typically affected by 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 groups
The BCRD indicated that, when analyzing the results of the monthly variation of the general CPI in July 2025, it was observed that the five groups with the greatest impact on inflation were Food and Non-Alcoholic Beverages, Housing, Transportation, Restaurants and Hotels and Miscellaneous Goods and Services, which together explained approximately ninety percent of the inflation of the aforementioned month.
In this regard, the 0.47% variation recorded in the Food and Non-Alcoholic Beverages category is mainly explained by increasesin items such as fresh chicken, cassava, green plantains, soft bread, and salami, among others. In particular, it is worth noting that the increase in the price of fresh chicken, the food item with the largest relative share in this group, is due to the combined effects of high temperatures and the rainy season typical of this time of year, factors that seasonally affect the productivity of this sector. It should be noted that some foods, such as garlic, avocados, limes, soybean oil, oranges, and onions, among others, experienced price decreases, partially mitigating the overall inflation of this group.
Regarding the Housing group index, the Central Bank reports a 0.74% increase due to price hikes in domestic liquefied petroleum gas (LPG) and rental . Similarly, the Transportation group experienced a 0.24% inflation rate, driven by adjustments in the prices of LPG for vehicles and diesel fuel, as well as in automobile prices and fares for motorcycle taxis and public transportation services.
Regarding the CPI for Restaurants and Hotels, the monetary authority explains that it showed an inflation rate of 0.43% as a result of price increases in food services prepared outside the home, while the index for the Miscellaneous Goods and Services group showed a variation of 0.34%, driven by the increase in personal care services and items.
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 0.39% in July 2025, mainly driven by price increases in liquefied petroleum gas (LPG) for domestic and vehicular use, some food products, tour packages, and automobiles. The monthly variation of the index for non-tradable goods and services was 0.37%.
Inflation by Geographic Region:
The Central Bank reports that inflation by geographic region in July, compared to June 2025, shows that the price index for the Ozama region, which includes the National District and Santo Domingo province, experienced a variation of 0.31%, the North or Cibao region 0.42%, the East region 0.41%, and the South region 0.47%. The most pronounced variation rate observed in the South region is due to a greater contribution from the Food and Non-Alcoholic Beverages and Transportation groups. In contrast, the Ozama region presented the most moderate inflation, influenced mainly by a lower impact from these groups and a greater contribution from the Housing category.
Inflation by Quintiles:
The Central Bank of the Dominican Republic (BCRD) concludes that the price indices by socioeconomic strata showed inflation rates of 0.39% in quintile 1, 0.44% in quintile 2, and 0.43% in quintile 3. Meanwhile, quintiles 4 and 5 showed variations of 0.36% and 0.27%, respectively. The more moderate inflation rate observed in quintile 5 is mainly due to the fact that food has a lower relative weight in the consumption basket of higher-income households, as well as to the reductions reflected in airfares, which lessened the impact of the Transportation group in that stratum.
