Dominican Republic inflation rises as fuel and food price shocks pressure basic goods

The president of the Dominican Federation of Merchants warned that another rise in fuel prices would quickly translate into higher costs for the basic basket of goods. He said a 3‑5% increase in fuel could become "prácticamente inmanejable," forcing transport companies to raise prices and squeezing consumers, who already have limited purchasing power. At present, prices for staples such as rice, sugar and beans have remained stable, partly because transport subsidies have kept costs down.

An analysis by the Economic Commission for Latin America and the Caribbean (CEPAL) found that Dominican inflation is largely driven by external factors. Increases in global food prices, expansion of the money supply, stronger U.S. consumer prices and a rising dollar each contribute to price pressure, while higher oil costs raise transport and production expenses. CEPAL estimates that a 1% rise in world food prices adds about 0.31% to domestic prices, highlighting the country's vulnerability to international market shocks.