Costa Rica: Inflation inches up to over two-year high in May but remains below target
June 7, 2017
Consumer prices rose 0.22% in May, climbing away from April’s 0.15% increase. According to the National Institute of Statistics and Census (INEC), the figure was driven by a rise in transport prices, which more than offset a fall in prices for entertainment and culture. Food and non-alcoholic beverage prices, the most heavily weighted grouping in the index, fell slightly.
Inflation inched up to 1.7% in May (April: 1.6%) and marked the strongest reading in more than two years. Regardless, inflation remains below the BCCR’s 2.0%–4.0% target range. Meanwhile, annual average inflation climbed to 0.8% in May, following April’s 0.6%, and marked the highest annual average figure in more than a year.
Author: Christopher Thomas, Economist