Dominican Republic Inflation Holds at 5.12%
DOMINICAN REPUBLIC · ECONOMY
Key Facts
- The country The Dominican Republic shares Hispaniola with Haiti and is home to Punta Cana, a beach resort area popular with US travellers.
- What happened Consumer prices rose 0.33% in September, leaving annual inflation at 5.12%, barely below the 5.13% recorded in August.
- The target The central bank’s target range is 4%, plus or minus one point, so the headline rate sits just above the 5% ceiling.
- The trend Annual inflation has stayed above 5% every month since April and peaked at 5.67% in June; a year ago it was 3.76%.
- The drivers Government-set gasoline and diesel price rises, food such as plantains and rice, and private school fees did most of the pushing.
- What it means for you Restaurant and hotel prices are 7.66% higher than a year ago, although airline tickets got cheaper in September.
- Still open How fuel prices, rice trade talks with Washington and the next interest-rate decision will shape prices in the coming months.
Dominican Republic inflation held at 5.12% in September, as higher fuel, food and school prices outweighed cheaper phone plans and airfares. The Central Bank of the Dominican Republic (BCRD), which sets interest rates, published the figure on Tuesday, 13 October.
The number matters to Americans who holiday in Punta Cana or Santo Domingo, and to Dominican families in the US who send money home. Prices are still rising faster than the top of the central bank’s target range, with food and fuel doing most of the pushing.
What the September Figures Show
The consumer price index rose 0.33% from August, based on 364 goods and services grouped into twelve categories. Over twelve months, Dominican Republic inflation reached 5.12%, compared with 5.13% in August.
Core inflation, which leaves out volatile food, fuel, regulated tariffs, alcohol and tobacco, fell for a second month to 4.61%. It had stood at 4.96% in June and July, so it has dropped 0.35 percentage points since then.
The central bank said core inflation remains inside its target range of 4%, plus or minus one point. It also said inflation expectations remain anchored to its target over the period that monetary policy covers.
On its website, the bank puts inflation for the first nine months of 2026 at 2.93%. Its monthly report shows annual Dominican Republic inflation above 5% since April, with a peak of 5.67% in June.
Fuel, Food and School Fees
Transport was one of the two biggest drivers of Dominican Republic inflation, rising 0.64% in the month on government-set gasoline and diesel increases. The bank linked those increases to high prices for crude oil and refined fuels.
School buses also cost more, while cheaper airline tickets partly offset the rise. Over twelve months, transport prices were up 8.19%, the fastest increase of the twelve groups in the index.
Food and non-alcoholic drinks rose 0.43%, led by green plantains, squash, pigeon peas, sweet potatoes, purified drinking water, rice and eggs. Cheaper fresh chicken, avocados, potatoes, oranges and cassava softened the increase.
Education costs jumped 1.85% as private schools raised fees, a seasonal pattern tied to the start of the school year and enrolment. Transport, food and education together explained 85.05% of September’s inflation.
Phone bills moved the other way, with communications prices down 1.06% after carriers added more data to postpaid mobile plans. Restaurants and hotels rose 0.34%, led by the set lunch known locally as the plato del día.
The Rice Question and the United States
Rice is one of the foods that rose in September, and it sits at the centre of a trade debate with Washington. The government has repealed Decree 693-24, a December 2024 rule that set tariffs to shield local rice farmers from imports.
That decree charged 20% on rice imports within a quota agreed at the World Trade Organization and 99% above it, Diario Libre reported. It also allowed a preferential quota of 23,300 tonnes of US rice to enter duty-free.
The repeal comes as both countries discuss US rice access under DR-CAFTA, their free trade pact with five Central American nations. President Luis Abinader said on Monday, 12 October, that the talks were only beginning and would start from scratch.
Abinader said he wants zero US tariffs on Dominican goods, because that is what the free trade agreement provides. He also promised to defend local growers and a fair price for rice, which he called strategic for the economy.
What It Means for You
For US visitors, the most relevant line is restaurants and hotels, where prices rose 7.66% over twelve months. Airline tickets, by contrast, became cheaper in September, according to the central bank.
The central bank quoted the peso at about 61.1 per US dollar to buy and 61.5 to sell on 13 October. With Dominican Republic inflation at 5.12%, each peso buys roughly 5% less than it did in September 2025.
For US families who send money to relatives on the island, higher food and school costs eat into what each transfer buys. Prices rose fastest in the southern region in September, at 0.41%, and slowest in greater Santo Domingo, at 0.29%.
Investors in Dominican government bonds will note that core inflation has now fallen for two months in a row. The central bank raised its benchmark interest rate by a quarter point to 5.50% at its latest policy meeting.
What Is Not Known
The report does not say how much further fuel prices may rise, or how that would feed into Dominican Republic inflation. Transport carries the biggest weight in the index after food, so any further fuel increase would weigh on the headline rate.
It is also unclear how the end of the 2024 rice decree will affect prices in local shops and markets. Talks with the United States under DR-CAFTA have only just begun, according to the president.
Whether the central bank will change interest rates at its next monetary policy meeting is still open. The bank did not link the September data to any rate decision in its report.
More: Dominican Republic news in English, every day from The Rio Times.
Frequently Asked Questions
What is the Dominican Republic’s inflation rate?
Dominican Republic inflation was 5.12% in September 2026, after 5.13% in August, the central bank said. Prices rose 0.33% from August to September.
What is the Dominican central bank’s inflation target?
The Central Bank of the Dominican Republic works with a target range of 4%, plus or minus one percentage point. Core inflation, at 4.61%, is inside that range, while the headline rate of 5.12% is slightly above it.
Is the Dominican Republic getting more expensive for US tourists?
Restaurant and hotel prices were 7.66% higher in September than a year earlier, above overall Dominican Republic inflation. Airline tickets, however, became cheaper during the month, according to the central bank.
Why is rice in the news in the Dominican Republic?
Rice prices rose in September, and the government has repealed a 2024 decree that protected local farmers with import tariffs. The issue is part of new talks with the United States under the DR-CAFTA trade agreement.
Sources: Banco Central de la República Dominicana, Informe índice de precios al consumidor (IPC), septiembre 2026, 13 October 2026; Banco Central de la República Dominicana, press release on September CPI, 13 October 2026; Banco Central de la República Dominicana, policy rate decision (5.25% to 5.50%), 2026; Banco Central de la República Dominicana, home page (inflation summary and exchange rate), 13 October 2026; Diario Libre, 13 October 2026; Diario Libre, 12 October 2026; N Digital, 8 October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief