Costa Rica Inflation

Costa Rica

Costa Rica: Inflation continues upward trajectory and reaches 10-month high in July

August 4, 2014

Consumer prices increased 0.91% over the previous month in July, which came in well above the 0.38% rise tallied in June. The print marked the highest inflation rate in three months. According to the Statistics Institute, 8 of the 12 categories that comprise the index registered price increases in July. Housing and housing services as well as transport were the categories that experienced the largest monthly gains.

Annual headline inflation increased from 4.6% in June to 5.2% in July, reaching the highest level since September 2013. As a result, inflation remains well-anchored within the Central Bank’s tolerance margin of plus/minus 1.0 percentage point around its 4.0% target. Annual average inflation remained unchanged at June’s 4.1%.

The core inflation index, which strips out short-term fluctuations in the consumer price index, rose 0.33% over the previous month (June: +0.22% month-on-month). Annual core inflation came in at 3.9% in July, matching last month’s reading.

The Central Bank projects that inflation will end 2014 at 4.8% and sees it moderating to 4.6% in 2015. FocusEconomics panelists see inflation ending 2014 at 5.1%, which is unchanged from last month's forecast. In 2015, the panel sees year-end inflation at 5.0%.

Author: Teresa Kersting, Economist

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Costa Rica Inflation Chart

Costa Rica Inflation July 2014

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

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