Costa Rica Inflation March 2021

Costa Rica

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.”

FocusEconomics Consensus Forecast panelists expect inflation to end 2021 at 2.1%, which is unchanged from last month's forecast, and 2022 at 2.4%.


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Costa Rica Inflation February 2021 3

Note: Annual and monthly variation of consumer price index in %.
Source: National Institute of Statistics and Census (INEC).


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