Dominican Republic 8.7% inflation ranks 4th in region
Santo Domingo.- In January 2022, year-on-year inflation, that is, the variation of the Consumer Price Index (CPI) with respect to January 2021 in the Dominican Republic was 8.7%, ranking as the fourth country in the region
It posted the highest year-on-year increase in your prices; surpassed only by Brazil (10.4%), Argentina (50.7%) and Venezuela (405.0%). Bolivia (0.7%), Ecuador (2.6%) and Panama (2.6%) were the countries with the lowest increase in their prices.
The information corresponds to an investigation by CREES (Regional Center for Sustainable Economic Strategies) based on information from the OECD (Organization for Economic Cooperation and Development) and central banks.
Why are different economies in the world showing greater increases in their prices than those that occurred before the Covid-19 pandemic? The world’s economies are experiencing a period of inflation that has its origins in the expansionary measures of central banks.
The US Federal Reserve, like other major central banks around the world, has recognized that inflation is not temporary.
The argument that the bottlenecks in the production chains were the main cause of the increase in prices is beginning to lose importance and it is becoming more and more evident that a generalized and sustained increase in prices is due to the increase in the quantity of currency.
Although central banks have begun to react, it is important to clarify that international conditions are still ripe for price increases to continue.
As long as governments spend more money (debt) than they have from taxes, there will be inflation. And inflation is NOT NORMAL. It is an effect of GOVERNMENT OVER SPENDING AND BAD FISCAL POLICY!
More accurately, it’s when too many units of currency chase the same or smaller supply of goods and services.
The two ways to fight inflation are: #1) increase supply of goods and services, #2) decrease supply of money
Government over spending does contribute to this. Considering taxation (or excess monetary printing) is money taken from the people by force, it is the responsibility of the government to use it responsibly. Since this is often unreliable, most people would just like the government to collect and spend as little as possible.