Costa Rica: Inflation eases in January
February 2, 2012
In January, consumer prices rose 0.17% over the previous month, which was well below the 0.92% price increase registered in December. As a result, annual inflation fell from 4.7% in December to 4.2%, which marks the lowest level since December 2009. Meanwhile, the core inflation index, which smoothes short-term fluctuations in the consumer price index, added 0.68% in January, above the 0.35% increase seen in December. In spite of the monthly increase, annual core inflation remained unchanged at December's 4.5%. According to its Macroeconomic Programme 2012-2013, in the absence of fiscal reform the Central Bank intends to maintain an inflation target of 5.0% for both 2012 and 2013 (with a tolerance margin of 1.0 percentage points). The Bank also presented an alternative scenario, which takes into account the approval of the fiscal reform, in which monetary authorities lowered their inflation target to 4.0% for both 2012 and 2013.