Costa Rica: Inflation eases in September
October 4, 2011
In September, consumer prices dropped 0.16% over the previous month, which contrasted the 0.26% price increase registered in August and exceeded the 0.08% decrease in September 2010. As a result, annual inflation inched down from 5.3% in August to 5.2% in September, edging closer to the Central Bank's 5.0% inflation target. According to the National Statistics Office (INEC, Instituto Nacional de Estadistica y Censos), lower prices for food and non-alcoholic beverages (-1.02% month-on-month) more than offset higher prices for education (+0.43% mom). Meanwhile, the core inflation index, which smoothes short-term fluctuations in the consumer price index, added 0.15% in September. Annual core inflation inched up from 4.8% in August to 4.9% in September. According to its July revision of the Macroeconomic Programme 2011-2012, the Central Bank maintains an inflation target of 5.0% for 2011, with a tolerance margin of 1.0 percentage points and a target of 4.0% for 2012.