Santo Domingo.– The Secretary of Finance of the Fuerza del Pueblo, Daniel Toribio, stated that the year-on-year inflation for the month of April reached 5.11%, exceeding the target range established by the Central Bank of the Dominican Republic (BCRD).
Toribio pointed out that, although the issuing body maintains that the country is able to face the effects of the oil crisis, this analysis leaves out the reality faced by middle-class households and lower-income sectors.
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The document presented today by the Central Bank, in which it assures that the country is prepared to withstand the effects of the oil crisis, leaves out a central point: the situation faced by the middle class and poor households”, he expressed.
The political leader indicated that, although oil influences inflation, it is not the only factor explaining it, while highlighting that other countries in the region have shown different behaviors despite facing similar external pressures.
In that sense, he cited that Costa Rica registered negative year-on-year inflation in April, while El Salvador closed at 2.16% and Panama maintains low levels, in contrast to the Dominican Republic, which stood at 5.11%.
Toribio explained that the inflationary impact is reflected in products and services of daily consumption such as coffee, purified water, soft drinks, groceries and other basic foods, as well as in the cost of public transportation, including motorcycle taxis, public cars and buses.
Furthermore, he warned that the basic basket of the first quintile reached RD$29,457.90 in April, which, he said, shows a significant gap compared to the income of workers.
He pointed out that the minimum wage in small businesses is RD$18,421, while in micro-enterprises it amounts to RD$16,915, which leaves workers with a deficit compared to the cost of the basic basket.
“The government should not reduce inflation through oil. It has to address internal factors such as weak competition, intermediation, internal transportation, supply problems, lack of traceability, and weak price monitoring,” he said.
Finally, Toribio stated that inflation should not be seen solely as an economic indicator, but as a reality that directly impacts the ability of Dominicans to access food, transportation, and basic services.
