Inflation in the D.R. has been below the 4.0% target since December 2023 and seems to have stabilized around 3.35% during 2024, standing 3.29% in September. Similarly, the US inflation also seems to have steadied its downward trend from a high of 9.1% in June 2022 to 2.4% in October, slowly approaching its target rate.
The Dominican inflation target remains set at 4.0%, plus or minus a full percentage point. Within the Latin American context, this places the actual Dominican inflation rate below Brasil, Mexico, Colombia and Uruguay (all of which have interest rates higher than DR) and above the rates of Paraguay, Chile, Guatemala and Costa Rica.
Domestic inflation is not expected to surpass 3.6% for the present year, rising to 4.0%, the target rate, for 2025 and 2026 according to the price expectations survey. This is, however, associated with an expected rise in the reference rate (TPM) in the coming year.
