Costa Rica Inflation August 2019

Costa Rica

Costa Rica: Inflation holds steady in August, while the Central Bank leaves rates unchanged on 21 August

September 6, 2019

Consumer prices fell 0.1% in August compared to the previous month, contrasting the 0.7% jump in July, which was a three-and-a-half year high and due to the introduction of an expanded VAT in the month. August’s decrease was partly due to lower food and non-alcoholic beverage prices.

Inflation in August was unchanged at July’s 2.9%, staying close to the 3.0% midpoint of the Central Bank’s 2.0%–4.0% target range. Annual average inflation ticked up to 2.2% from 2.1%.

On the monetary policy front, the Central Bank left the key policy rate unchanged at 4.00% on 21 August amid contained inflationary pressures, after cutting it for the third time this year by 0.25 percentage points on 22 July.

FocusEconomics Consensus Forecast panelists expect inflation to end this year at 2.7%, which is unchanged from last month's forecast, and 2.9% in 2020.

Author:, Economist

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Costa Rica Inflation Chart

Costa Rica Inflation August 2019

Note: Annual and monthly variation of consumer price index in %.
Source: National Institute of Statistics and Census (INEC).

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