Costa Rica: Inflation rises to 22-month high, remains well below target in February
March 8, 2017
Consumer prices in Costa Rica rose 0.40% month-on-month in February, a slightly slower pace than January’s 0.57% increase. According to the National Institute of Statistics and Census (INEC), the figure was driven by a rise in transport and education prices, while a majority of the remaining sub-categories experienced only minor increases. The telecommunications sub-category, on the other hand, was the only one to suffer significant price cuts in February, driven by lower prices for prepaid mobile phone services.
Inflation jumped to 1.1% in February, up from 0.7% in January and marking the strongest reading in nearly two years. Regardless, inflation remains considerably below the Central Bank’s 2.0%–4.0% target range. Meanwhile, annual average inflation inched up to 0.2% in February following January’s return to positive territory (+0.1%), recording the strongest growth in more than a year.
Author: Christopher Thomas, Economist