Inflation Down in DR and Guatemala

The Dominican Republic and Guatemala are seeing lower inflation rates, says JPMorgan. The DR’s monthly inflation dropped by 3.3% in November, taking the annual rate to 7.2%, down from 12.8% in October. “We expect positive base effects, lower commodity prices and a decline in domestic demand to ease consumer price pressures and help bring down headline inflation, which is already at its lowest point since October 2007, to around 6% by year-end and keep it between 6-7% in 2009,” the shop says. Guatemala, while not having seen inflation drop in 2008, should see it decline to 7.5% in 2009 from about 9.8% in 2008.