NewsWhore
07-17-2007, 05:30 PM
Although generally speaking prices are still lower than they were in 2004, as was reported in yesterday's DR1 news, analysts in today's Diario Libre explain why food prices have continued to rise. According to the article, the increase in food prices is due to the three fiscal reforms that have increased tax levels over the past three years. Finally, the increasing cost of electricity and the high cost of gasoline and diesel used to distribute goods, also due in part to increasing taxes, have affected food prices.
The Central Bank has come out on the offensive by disputing the claims that prices are too high. Today's papers carry a paid advertisement by the Central Bank headed, "The reality of prices." The ad says that between August 2004 to June 2007 prices only increased by one digit, while between August 2002 and June 2004 prices increased by 133.05%. The Central Bank advertisement also says that critics fail to point out that even though exchange rates have fallen the fact that fuel prices have increased by 50.2% has directly affected food prices. The advertisement continues by saying that in order to make these comparisons the Consumer Price Index needs to be taken into consideration and that the DR's CPI is compared daily with the index in other countries.
More... (http://www.dr1.com/index.html#3)
The Central Bank has come out on the offensive by disputing the claims that prices are too high. Today's papers carry a paid advertisement by the Central Bank headed, "The reality of prices." The ad says that between August 2004 to June 2007 prices only increased by one digit, while between August 2002 and June 2004 prices increased by 133.05%. The Central Bank advertisement also says that critics fail to point out that even though exchange rates have fallen the fact that fuel prices have increased by 50.2% has directly affected food prices. The advertisement continues by saying that in order to make these comparisons the Consumer Price Index needs to be taken into consideration and that the DR's CPI is compared daily with the index in other countries.
More... (http://www.dr1.com/index.html#3)