Costa Rica: Inflation falls further below Central Bank target range in March

Consumer prices fell 0.14% in March compared to the previous month, contrasting the 0.08% increase in February. According to the National Institute of Statistics and Census, March’s outturn came on the back of lower automobile prices and airplane tickets.

Inflation moderated to 1.4% in March from 1.5% in February, remaining below the Central Bank’s 2.0%–4.0% target range. Annual average inflation ticked down to 2.0% in March from 2.1% in February.

Costa Rica Inflation Forecast

Inflation should pick up in the coming months, particularly given this year’s switch to a value-added tax from a general sales tax and an expected acceleration in economic growth. FocusEconomics Consensus Forecast panelists expect inflation to end this year at 3.0%, which is down 0.1 percentage points from last month's forecast, and 3.2% in 2020.