The rise in prices of basic foods in the Dominican Republic hits the pockets of consumers | CNN

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(CNN Spanish) --

 The increase in food prices in the Dominican Republic hits the pockets of consumers.

The prices of corn flour, soybean oil, beef and eggs are some of the products of the basic family basket that have experienced increases of up to 32% in the last year, according to the Ministry of Industry and Trade.

As has happened in other countries, inflation in recent months has been the result of the health crisis, combined with the increase in the prices of some primary goods such as wheat and soybeans, and also of oil in international markets.

This last factor has been the trigger for significant increases in the basic basket, indicated the Central Bank of the Dominican Republic.

And now there is the Russian invasion of Ukraine, the world's main wheat producers.

Together they represent 29% of all world exports of this cereal.

The monthly report of the Central Bank of the Dominican Republic indicates that year-on-year inflation between February 2021 and February 2022 was placed at 8.98%;

while core inflation (a more precise indicator that shows the variability of consumer prices in the short term) annualized stood at 6.97% in February 2022.

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From February 2021 to February 2022, the price of corn flour increased 32.70%, soybean oil 32.30%, herring 26.40%, beef about 22%, and eggs the 6%, according to data from the Central Bank.

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The impact of the increases can be seen when taking into account that the minimum wage in the Dominican Republic in the private sector ranges between US$234 and US$382 per month, according to data from the Executive Branch.

The simplest basic basket has a cost of US$436.20, according to the Central Bank's calculations.

(Source: Central Bank Chart).

For many Dominican citizens, the numbers no longer add up: in one year, 15 of the 24 products in the basic basket that the Ministry of Industry and Commerce monitors have increased in price.

Prices force to substitute food

For some consumer organizations and housewives consulted by CNN, this has forced the consumer to substitute some foods.

This is the case of Cristofer Rosa: "You make a regame, if you make chicken, you tie it with tayota."

And that of María Fermín, who is a housewife: "Lots of vegetables, aubergines, tayotas, molondrones, things like that."

The current price of products such as rice, beans and chicken meat has forced parents, residents of the El Café and Buenos Aires de Herrera sectors of the Dominican capital, to increase their daily budget to purchase food.

"We have already reached an extreme where we have to leave up to 800 pesos (US$15) for food, because imagine water, coffee, sugar, soap, beans," said father Juan Ortega.

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In the last year, rice, eggs, chicken, bread, white sugar and cream have increased between US$0.18 and US$0.50.

The government seeks to alleviate the increases by subsidizing imports of up to 10% for a period of six months in products such as fuel and also in others highly affected by the market such as corn, wheat, soybeans, flour and fats.

Agreement to hold certain prices for at least 45 days

This Thursday, the minister of the Ministry of Industry, Commerce and Mipymes (MICM), Víctor Bisonó, announced in a press conference that he has reached an agreement with the wheat flour milling companies to maintain the prices of bread, flour and pasta for at least 45 days.

"This agreement with the flour sector is a decisive step to guarantee access to essential products, while seeking fair prices to the extent possible in this complex global context," said Bisonó.

For his part, the Minister of Agriculture, Limbert Cruz, pointed out that they reached an agreement with the factories and rice producers to maintain the stability of the prices of the product until the end of the year, in addition to the fact that the government has a security inventory that exceeds four million quintals of rice, to guarantee the supply of consumption for four months.