Costa Rica: Inflation inches up in September
October 2, 2013
Consumer prices rose 0.13% over the previous month in September, which was above the meager 0.05% increase registered in August. The acceleration in inflation was mainly driven by an increase in transport costs, as well as by an across the board increase in prices.
Annual headline inflation inched up from 5.3% in August to 5.4% in September. Annual average inflation rose to 5.5%, up from August's 5.4%, which marks the highest level in more than two years. Despite the upwards trend, inflation remains within the Central Bank's tolerance margin (plus/minus 1.0 percentage points) around its 5.0% target.
The core inflation index, which strips out short-term fluctuations in the consumer price index, rose 0.12% over the previous month in September (August: +0.09% month-on-month). Annual core inflation inched up from 2.6% in August to 2.7% in September.
The Central Bank decided to leave the inflation target of 5.0% with a tolerance margin of plus/minus 1.0 percentage points for 2013 and 2014 unchanged, following the conditions of the Macroeconomic Program 2013-2014 published in July. FocusEconomics panelists see inflation ending the year at 5.2%, which is down 0.1 percentage points from last month's forecast. The panel sees year-end inflation at 5.1% in 2014, which is down 0.1 percentage points from last month's estimate.