Costa Rica: Inflation continues to creep up
June 3, 2011
In May, consumer prices rose 0.67% over the previous month, which was above the 0.15% price increase registered in April. According to the National Statistics Office (INEC, Instituto Nacional de Estadistica y Censos), higher prices for transport (+2.56% month-on-month) offset lower prices for leisure and culture (-1.55% mom). Annual inflation inched up from 4.7% in April to 4.8% in May, creeping closer to the Central Bank's 5.0% inflation target. Meanwhile, the core inflation index, which smoothes short-term fluctuations in the consumer price index, added 0.18% in May. In spite of the subdued price increase in May, annual core inflation inched up from 4.5% in April to 4.6%. According to the Revision of the Macroeconomic Program 2011-2012, the Central Bank maintains an inflation target of 5.0% for 2011, with a tolerance margin of 1 percentage points, and 4.0% for 2012.