Costa Rica Inflation September 2016

Costa Rica

Inflation edges down in September

Consumer prices fell 0.47% in September from the previous month, which contrasted August’s 0.03% increase and marked the lowest reading since March 2016. According to the Statistical Institute, the result reflected lower prices in several categories, but mostly in the food and non-alcoholic beverages category.

Inflation dropped from 0.6% in August to 0.4% in September. However, the annual average variation in consumer prices continued to recover some ground. It recorded a slight increase in September, edging up from a 0.5% drop in August to a 0.4% decrease.

The Central Bank cut the Base Rate from 4.70% to 4.65% on 5 October. The move is the latest step in the easing program it started in February, which aims to achieve the Bank’s commitment to keep inflation at 3.00% plus/minus one percentage point. The Base Rate, which constitutes the main reference rate for loans and investments, is calculated weekly by the Central Bank as a weighted average of the rates given on deposits by financial institutions for maturities of between 150 and 210 days.

FocusEconomics panelists see inflation ending 2016 at 1.7%, which is down 0.3 percentage points from last month's forecast. In 2017, the panel sees year-end inflation at 3.2%.

Author:, Economist

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Costa Rica Inflation Chart

Costa Rica Inflation September 2016 0

Note: Annual and monthly variation of consumer price index in %.
Source: National Institute of Statistics and Census (INEC).

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