Costa Rica: Inflation drops below Central Bank?s target
November 3, 2011
In October, consumer prices rose 0.24% over the previous month, which contrasted the 0.16% price drop registered in September and was below the 0.47% increase in October 2010. As a result, annual inflation fell from 5.2% in September to 4.9% in October, which is below the Central Bank's 5.0% inflation target. According to the National Statistics Office (INEC, Instituto Nacional de Estadistica y Censos), higher prices for food and non-alcoholic beverages (+1.19% month-on-month) more than offset lower prices for transport (-0.90% mom). Meanwhile, the core inflation index, which smoothes short-term fluctuations in the consumer price index, added 0.53% in October. Annual core inflation rose from 4.9% in September to 5.3% in October. According to its July revision of the Macroeconomic Programme 2011-2012, the Central Bank maintains an inflation target of 5.0% for 2011, with a tolerance margin of 1.0 percentage points and a target of 4.0% for 2012.