Costa Rica: Inflation accelerates in March
April 6, 2018
Consumer prices fell 0.03% in March compared to the previous month, contrasting a 0.21% month-on-month increase in February. According to the National Institute of Statistics and Census (INEC), slightly lower prices in March came amid falling prices for both entertainment and culture, and clothing and footwear. On the other hand, higher prices for food outside of the household and accommodation services moderated the overall decline in prices in March.
Notwithstanding the month-on-month decrease in March, inflation accelerated to 2.6% in March from 2.2% in February. As a result, it remained within the Central Bank’s 2.0%–4.0% target range. Meanwhile, annual average inflation inched up to 2.0% in March from 1.9% in February—the highest reading since September 2015.
Costa Rica Inflation Forecast
FocusEconomics Consensus Forecast panelists expect inflation to end this year at 3.1%, which is down 0.1 percentage points from last month's forecast. In 2019, the panel sees inflation ending the year at 3.3%.
Author: Edward Gardner, Economist