Costa Rica: Inflation up in July
August 5, 2013
Consumer prices rose 0.34% over the previous month in July, which was above June's virtually flat reading. The increase was driven by higher prices for alcoholic beverages and cigarettes, as well as food and non-alcoholic beverages.
Annual inflation rose from 5.1% in June to 5.8% in July. As a result of the annual rise, annual average inflation increased from 5.2% in June to 5.4% in July, marking the highest level in more than two years.
Despite the increase, inflation still sits within the Central Bank's tolerance margin (plus/minus 1.0 percentage points) around its 5.0% target.
The core inflation index, which strips out short-term fluctuations in the consumer price index, rose 0.31% over the previous month in July (June: 0.12%). Annual core inflation inched up from 2.6% in June to 2.7% in July.
According to the revised edition of the Macroeconomic Programme 2013-2014 from July, the Central Bank intends to maintain the inflation target of 5.0% with a tolerance margin of plus/minus 1.0 percentage points for 2013 and 2014. FocusEconomics panellists see inflation ending the year at 5.0%, which is up 0.1 percentage points from last month's forecast. The panel sees year-end inflation at 4.9% in 2014.