Costa Rica: Inflation moderates in January
February 3, 2011
In January, consumer prices rose 0.68% over the previous month, which was below the 0.74% price increase registered in December. According to the National Statistics Office (INEC, Instituto Nacional de Estadistica y Censos), higher prices for education (+2.44% month-on-month) as well as for transport (+0.83% mom) drove the January increase. Despite the monthly price rise, annual inflation dropped a full percentage point from 5.8% in December to 4.8% in January, just back in line with the Central Bank's 5.0% inflation target. Meanwhile, the core inflation index, which smoothes short-term fluctuations in the consumer price index, added 0.69% in January, pushing annual core inflation to 3.6%, up from 3.5% in December. According to the Revision of the Macroeconomic Program 2011-2012 announced in January, the Central Bank maintains an inflation target of 5.0% for 2011, with a tolerance margin of 1 percentage points, and 4.0% for 2012.