Costa Rica Inflation

Costa Rica

Costa Rica: Inflation rises to eight-month high in May

June 4, 2014

Consumer prices increased 0.53% over the previous month in May, which was down from the 1.14% rise tallied in April. The print marked the lowest inflation rate since December 2013. According to the Statistics Institute, more than half of the categories that comprise the index registered price increases in May. The categories that had the strongest influence on the increase were food and non-alcoholic beverages, alcoholic drinks and cigarettes, as well as transport.

Annual headline inflation increased from 3.7% in April to 4.2% in May, reaching the highest level since September 2013. As a result, inflation remains well-anchored within the Central Bank’s tolerance margin of plus/minus 1.0 percentage points around its 4.0% target. Annual average inflation edged down from April’s 4.2% to 4.1% in May.

The core inflation index, which strips out short-term fluctuations in the consumer price index, rose 0.34% over the previous month (April: +0.61% month-on-month). Annual core inflation inched up from April’s 3.6% to 3.8% in May.

The Central Bank projects inflation to end 2014 at 4.8% and sees it moderating to 4.6% in 2015. FocusEconomics panelists see inflation ending 2014 at 5.1%, which is unchanged from last month's forecast. In 2015, the panel sees year-end inflation at 5.0%.

Author: Teresa Kersting, Economist

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Costa Rica Inflation Chart

Costa Rica Inflation May 2014 0

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

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