Dominican Republic Shows Resilience Against Inflation in 2023

• Throughout 2023, the Dominican Republic faced challenges due to the high cost of essential products, influenced by global events beyond local control.
• The COVID-19 pandemic and the Russia-Ukraine war significantly impacted the world economy. These events increased freight costs for raw materials and fertilizers, raising food production and housing project costs in the Dominican Republic.
• Despite this, prices remained relatively stable in 2023, with maritime freight costs dropping by over 50%. Essential products like fresh chicken, eggs, oil, and rice showed price stability. Fuel prices remained almost constant throughout the year, benefiting from government subsidies.
• Additionally, the government maintained various measures to mitigate inflation’s impact. These included fuel subsidies and financial support to sectors like electricity, transportation, and food production. In 2022, the government allocated substantial funds to these sectors, positively impacting product prices in 2023.
• Finally, the Central Bank’s financial policies, such as interest rate adjustments, have been effective in curbing inflation, with expectations for the recovery of real wages for the working class.

(Source: Dominican Today)