Haiti Inflation Slows to 17% but Central Bank Keeps Rates on Hold

Haiti's inflation rate declined to 17% in August, marking the lowest level since at least January 2022, according to official data. The central bank, Banque de la République d'Haïti (BRH), decided to keep its main interest rates unchanged. This figure, which ran up to June, indicated a significant drop from 18.9% in June to 17.5% in July.

Although August's rate is much lower than the peak of 32.2% in October 2025, it remains considerably higher than the Dominican Republic's 5.67% in June. The data covers April to June, representing the third quarter of Haiti's fiscal year, which spans from October to September. Inflation increased to 21% in April, following a 29.5% rise in state-set pump prices to 34.7%.

The BRH linked this fuel price increase to the conflict in the Middle East, which began in late February 2026. Subsequently, the authorities reduced fuel prices in May and June, causing inflation to fall back. Core inflation, which excludes the most volatile prices, stood at 17.3% in June. The BRH attributes its efforts to maintaining a stable exchange rate, lower fuel costs, and absorbing excess cash held by banks as contributing factors to the decrease in inflation.

Haiti has faced consistently high inflation for years, with figures reaching 49.3% in January 2023, according to the national statistics institute (IHSI) and subsequently reported by the BRH. Economist Kesner Pharel highlighted this long-term trend in a February discussion, as reported by Vant Bèf Info. He pointed out that inflation averaged 6.3% between 2010 and 2014, 13.5% from 2015 to 2018, and 26.4% from 2019 to 2025.

Pharel linked the most severe periods to nationwide shutdowns or "peyi l'ok," which disrupted business continuously from 2019, resulting in an estimated overall poverty rate of near 70%. Despite the slower inflation, prices still rose by 1.6% in August alone, albeit at a slower pace than most of 2025. The gourde, Haiti's currency, only appreciated by 0.13% against the US dollar over the year, while consumer prices rose by 17%.

Imports, which account for a significant portion of Haiti's economy, reached $1.31 billion in the April–June quarter, compared to exports of only $118.79 million. Additionally, remittances sent home by Haitians abroad totaled $1.31 billion in the quarter, exceeding the trade deficit. The BRH bought a net $98.98 million in foreign currency reserves, covering over seven months of imports.

While commercial banks must maintain 40% of their deposits in gourdes as reserves at the BRH, they are only required to hold 53% of their foreign currency deposits in gourdes. The BRH's short-term bill rates remain at 6%, 8%, and 11.5% for seven, 28, and 91 days, respectively, without any changes since August 2022.