Costa Rica: Inflation decelerates in October
November 7, 2019
Consumer prices fell 0.1% in October in month-on-month terms for the third consecutive month, partly due to the continued high-base effect stemming from the introduction of VAT in July, which replaced the old sales tax. October’s decrease was driven by lower prices for transport, likely due to lower fuel costs.
Inflation moderated to 2.1% in October from 2.5% in September, but remained within the Central Bank’s 2.0%–4.0% target range. Annual average inflation was unchanged at 2.2% in October for the third consecutive month.
Author: Edward Gardner, Economist