Costa Rica: Inflation drops to lowest level since May in October

Inflation fell to 9.0% in October, following September’s 10.4%. October's figure marked the lowest inflation rate since May. The reading was largely due lower price pressures for transport, housing and clothing.

Annual average inflation rose to 7.5% in October (September: 7.0%).

Finally, consumer prices fell 0.76% from the previous month in October, a more moderate decrease than the 0.95% fall logged in September.

On the outlook for inflation, EIU analysts commented:

“Our central scenario assumes that prices will continue to drift down towards the BCCR's target band for several more months. However, the pace of this trend will depend on developments in global food and fuel markets, over which the government has little control.”

Our panelists project inflation to end 2023 at 4.9%, which is up 0.2 percentage points from last month’s forecast, and 2024 at 3.9%.