Costa Rican beach from above

Costa Rica Inflation May 2019

Costa Rica: Inflation accelerates in May and the Central Bank applies a raft of dovish measures

Consumer prices rose 0.14% in May compared to the previous month, down from April’s 0.56% increase. According to the National Institute of Statistics and Census, May’s increase was stoked by higher transport prices but weighed on by lower entertainment and culture prices.

Inflation accelerated to 2.3% in May, up from 2.1% in April, delving further into the Central Bank’s 2.0%–4.0% target range. Annual average inflation remained unchanged from April’s 2.0% in May.

On the monetary policy front, the Central Bank of Costa Rica slashed interest rates by 0.25 percentage points on 22 May, bringing the key policy rate down to 4.75% from 5.00%. The move was taken with an eye on low inflation in recent months and moderate inflationary expectations for the months ahead. In addition, on 3 June, the Central Bank reduced the minimum legal reserve requirements to be held by banks to 12.0% from 15.0% in a bid to shore up lending growth.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest