[hopertveyk]

I went to price out some Nissan Auto's this morning figuring that since I was there 2 weeks ago and that the Peso was falling I would come back in a couple of weeks and get a reduction since the car's are all priced in US $, So Its only logical that the Dollar sticker priced on windshields would also be down (right) Wrong, the prices are up much higher then before?

When I mentioned this to my wife she Informed me that the Supermarket prices are also going up every day?

It must be nice when you can have it both ways and get away with it!

Only in the DR.

Gringo

I believe that those businesses that did manage to survive Hippo's reign in terror, took such a beating financially, that they are trying to make up for it now while they can, and that with time, things will level off.

[topbonuscasino]

Let's get real. When the rate was over 50 to 1, we gringos were making out like bandits while most businesses were dying - not to mention the average person not being able to afford milk. So now we'll suffer for a few weeks. But don't worry, we'll all be back to deing bigshots soon enough. - D

[PareKeect]

Vegetables have been cheaper for two reasons -

1) some of them are in season
2) Hipolito bought some of the farmers free seeds to stimulate agriculture, the fruits of which made it to market recently.

Prices are going up because...

1) Consumer and investor confidence is up. A real estate agent in SD (remax) told me they've done as much business last week as in the whole year to date. So with people buying again, prices can go up a bit since not all businesses are in a perpetual state of liquidation, preparing to close up shop and grab the next yola.

2) Some Dominican small businesses never "got it" about the exchange rate. As I mentioned before, they thought the dollar was getting expensive, they never understood it was the peso that was falling. So they reacted by raising prices marginally but they only really adjusted properly on items that they reordered frequently. As time goes on more and more inventory needs to be reordered and the new costs are shocking them, so the prices continue to go up.

3) Businesses that have been getting huge tax breaks because of PRD campaign contributions etc. are obviously going to be paying full fare now, and the difference gets passed on to the consumer.

[Wckcvhsg]

in the dollar relationships to the Yen and the Euro. The dollar has fallen somewhat over the last few months also. Realize that those Euro's and Yen's are converted to dollars (or vice-versa) on the buying prices from Japan and Europe.

Just a thought.

Texas Bill

[fissasste]

DR is the only country I know where cars instead of devaluating with time they cling to their value or go up in price, specially if we're talking about an undisputed reliable car.

A dominican told us exactly the same a few days ago. It's very strange.

But maybe there is an explanation. In the DR there are many mechanics who rebuild cars and that way even an old car is still running fine. I know of a case where the engine died and is now beeing rebuild using parts of other engines from damaged vehicles. Not what the factories like to see...

We are used to buy new cars and loose money over time. Or buy a used car cheap. Nobody in our world rebuilds a car, because it doesn't make sense economically. But poor people find a way around. :-)

I even had the "pleasure" to see a home-made car build of parts from the junkyard and transporting a whole family. Of course without licence plate, insurance, etc...

[lLianneForbess]

Right on Danny! Actually food prices ARE coming down - Dominicana ground coffee 55 pesos last week, 51 today. Lettuce now down to 10 pesos a pound. Most vegetables are down in price & even rice is slightly cheaper.

[OvDojQXN]

[QUOTE=locofoto] I know of a case where the engine died and is now beeing rebuild using parts of other engines from damaged vehicles. Not what the factories like to see...[QUOTE]

And at least half of the things on the car will function properly when they are done putting it back together!

[imictiorume]

A lot of purchases were made when the peso was 45-50:1. Now those items are still on the shelf. The merchant has more in it than a like item purchased today. When they restock at a lower peso to dollar ratio the shelf price should drop.
On the other hand, if you wander out now to buy pesos with your dollars you'll pay upper 30's since the currencies are moving fluently together.
I buy 3/4 ton of chicken a week for my business, I'm paying the same now as a month ago. The chicken doesn't cost more but the producers cost of gettin him to market is up.

[mealiusarses]

Kind of like when the country is doing terrible the peso strengthens

[8Uxtkz7F]

A lot of purchases were made when the peso was 45-50:1. Now those items are still on the shelf. The merchant has more in it than a like item purchased today. When they restock at a lower peso to dollar ratio the shelf price should drop.

...that is right.....but it follows that when buying, the opportunity is there to find merchants who are re-stocking before others, or even better, look for new merchants who are taking advantage by being able to undercut those higher prices.

it will take a little time....but merchants will have to resort to lowering prices or hope that their items have a long shelf life (dominican merchants usually resort to the latter).

[P9CCd35R]

DR is the only country I know where cars instead of devaluating with time they cling to their value or go up in price, specially if we're talking about an undisputed reliable car.

[robstamps]

I believe the issue that ****es most people off is that merchants/bar owners/restaurateurs increased their prices immediately when the dollar/peso exchange rate started climbing citing this as the sole reason and in most cases the new pricing applies to existing inventory.
Using their rationale the prices should drop immediately.

Ain't ever going to happen is it?

[houkbsdov]

My dos cheles:

A combination of price lag (imported content in goods available today were still purchased when the Peso had less value) and real, substantial, price inflation. I figure the latter because the price of services with no foreign content has not gone down either.

[mynaflzak]

I believe that those businesses that did manage to survive Hippo's reign in terror, took such a beating financially, that they are trying to make up for it now while they can, and that with time, things will level off.

I will belive it when I see the price of a small Presidente go from $RD.50 back down to $RD.25 at my favorite Gringo watering hole! ( Ya Right Dream On )

I remember a few years back, there was a Coffee Crisis of some nature in Brasil and it drove the World's Coffee prices sky high and of course it doubled the price here in the DR.
After the Brasil Crisis was over and world prices went back to the norm, The Coffee as I recall stayed the same inflated price here.

Rock on Rocky!

Gringo

[mynaflzak]

I went to price out some Nissan Auto's this morning figuring that since I was there 2 weeks ago and that the Peso was falling I would come back in a couple of weeks and get a reduction since the car's are all priced in US $, So Its only logical that the Dollar sticker priced on windshields would also be down (right) Wrong, the prices are up much higher then before?

When I mentioned this to my wife she Informed me that the Supermarket prices are also going up every day?

It must be nice when you can have it both ways and get away with it!

Only in the DR.

Gringo

[mynaflzak]

Nope.............

[VtLe67WR]

That's the big subject !!!
Everybody is talking about it... Plenty of theories... We'll see.... But there's going to be popular pressure for lower proces... Maybe we'll get away with it...