Costa Rica: Inflation accelerates further in November
December 4, 2012
In November, consumer prices added 0.81% over the previous month, which was above the 0.45% increase recorded in October. The monthly increase came on the back of higher prices for alcoholic beverages and tobacco as well as for housing and utilities. As a result, annual inflation rose from 4.7% in October to 5.2% in November, the highest level recorded since August 2011.
Meanwhile, the core inflation index, which strips out short-term fluctuations in the consumer price index, added 0.35% in November, which was above the 0.19% increase observed in October. Annual core inflation rose from 3.2% in October to 3.4%.
Meanwhile, on 12 November, the Central Bank announced a new methodology to calculate the basic passive rate (BPR) - which is used by banks to calculate loan rates and other transactions - in order to reduce its volatility. The new BPR will now be calculated as a simple average of interest rates offered by commercial banks and financial institutions excluding the Ministry of Finance and the Central Bank, as opposed to the previous method which used a weighted average and included the rates offered by both institutions.
According to the latest revision to the Macroeconomic Programme 2012-2013, the Central Bank intends to maintain an inflation target of 5.0% (with a tolerance margin of plus/minus 1.0 percentage points) for both 2012 and 2013.