Costa-Rica: Inflation rises in April
May 4, 2013
In April, consumer prices rose 0.73% over the previous month, which came in well above the 0.11% increase recorded in March. The increase mostly reflects higher prices for rents, alcoholic beverages and tobacco as well as for transportation. As a result, annual inflation increased from 6.2% in March to 6.3% in April. In addition, annual average inflation rose to 5.1% from 5.0% in the previous month, reaching the highest level since June 2011. Consequently, inflation remains above the Central Bank's target of 5.0% with a tolerance margin of plus/minus 1.0 percentage points. Meanwhile, the core inflation index, which strips out short-term fluctuations in the consumer price index, rose 0.17% in April from the previous month, following the unchanged performance recorded in March. Annual core inflation fell from 2.9% in March to 2.8% in April. According to the Macroeconomic Programme 2013-2014, the Central Bank intends to maintain an inflation target of 5.0% (with a tolerance margin of plus/minus 1.0 percentage points) this year and the next. FocusEconomics panellists see inflation ending the year at 5.0%, which is up 0.1 percentage points from last month's forecast. For next year, the panel sees year-end inflation at 4.9%.