Dominica Inflation Rate

Dominica’s inflation rate in 2025 stood at 2.82 percent, placing it 106th in the world and matching the level recorded by India that year, while slightly above New Zealand’s 2.74 percent and below the United States’ 2.71 percent. The island nation’s price dynamics have spanned 58 years, moving from a modest 0.95 percent in 1967 to an extraordinary peak of 34.38 percent in 1974, a period marked by global oil shocks and domestic fiscal pressures. The lowest point occurred in 2015 when inflation turned negative, reaching –0.84 percent as deflationary forces reflected weak demand and a strong exchange rate. Since that trough, inflation has gradually risen, stabilising in the low‑single‑digit range that characterises the current outlook. Continued resilience of tourism revenues and prudent monetary policy are likely to keep inflation anchored near the 2025 level, although external commodity price volatility could alter the trajectory.