Costa Rica: Inflation rises in March
March 8, 2021
Consumer prices increased 0.03% over the previous month in March, contrasting the 0.26% drop recorded in February. The reading was largely due to higher prices for transport, as well as for recreational and cultural services.
Inflation ticked up to 0.5% in March, from February’s 0.4%. Meanwhile, the trend pointed down mildly, with annual average inflation coming in at 0.4% in March (February: 0.6%).
Looking ahead, analysts at EIU commented on inflation expectations, noting:
“We forecast that consumer prices will increase by 3.4% by end-2021 […] Our expectations of higher inflation stem from our assumption that GDP growth (and internal demand) will pick up in 2021. In addition, a weaker currency will result in higher import prices. Although the agreement with the (International Monetary) Fund does not introduce changes to the value-added tax (VAT), it includes the elimination of a number of tax exemptions, which will affect the price level moderately.”