Costa-Rica: Inflation falls to five-month low in May
June 5, 2013
Consumer prices were virtually unchanged in May, rising a slight 0.02% over the previous month, which came in well below the 0.73% increase recorded in April. The increase mostly reflects higher prices for food, in particular for tomatoes, which were nearly offset by lower prices for gasoline.
As a result, annual inflation dropped from 6.3% in April to 5.3% in May, which marks the lowest level in five months and within the Central Bank's target of 5.0% with a tolerance margin of plus/minus 1.0 percentage points. However, annual average inflation rose from 5.1% in April to 5.2% in May, reaching the highest level in two years.
Meanwhile, the core inflation index, which strips out short-term fluctuations in the consumer price index, rose 0.20% in May from the previous month, following the 0.17% rise recorded in April. Annual core inflation fell from 2.8% in April to 2.6% in May.
According to the Macroeconomic Programme 2013-2014, the Central Bank intends to maintain an inflation target of 5.0% (with a tolerance margin of plus/minus 1.0 percentage points) this year and the next. FocusEconomics panellists see inflation ending the year at 5.0%, which is up 0.1 percentage points from last month's forecast. For next year, the panel sees year-end inflation at 4.9%.