Costa Rica: Inflation jumps to nearly two-year high but remains below target in March
April 7, 2017
Consumer prices fell 0.42% month-on-month in March, contrasting February’s 0.40% rise and marking the first monthly drop since October. According to the National Institute of Statistics and Census (INEC), the figure was driven by a steep drop in food and non-alcoholic beverage prices, along with a similar decrease in transport prices. On the other hand, prices for rental and housing services, healthcare, and alcohol and cigarettes experienced moderate increases.
Inflation jumped to 1.6% in March, up from 1.1% in February and marking the strongest reading in nearly two years. Regardless, inflation remains below the BCCR’s 2.0%–4.0% target range. Meanwhile, annual average inflation inched up to 0.4% in March, following February’s 0.2%. March recorded the strongest annual average growth in more than a year.
Author: Christopher Thomas, Economist