Costa Rica: Inflation hits lowest level in four years
December 4, 2013
Consumer prices increased 0.17% over the previous month in November, contrasting the 0.76% decline registered in October. The slight increase in consumer prices reflected that higher prices for communications, as well as for food and non-alcoholic beverages, offset lower prices for housing and transportation.
Annual headline inflation eased from 4.1% in October to 3.4% in November, marking the lowest print since November 2009. As a consequence, inflation has dipped below the lower band of the Central Bank's tolerance margin of plus/minus 1.0 percentage points around its 5.0% target. Annual average inflation fell from October's 5.5% to 5.3%.
The core inflation index, which strips out short-term fluctuations in the consumer price index, rose 0.07% over the previous month in November (October: +0.16% month-on-month). Annual core inflation eased to 2.4% in November, which was down from October's 2.7%.
FocusEconomics panelists see inflation ending the year at 4.9%, which is down 0.3 percentage points from last month's forecast. The panel sees 2014 year-end inflation at 5.1%, which is down 0.2 percentage points from last month's estimate.