Costa Rica: October inflation at lowest level in more than two years
November 4, 2013
Consumer prices fell 0.76% over the previous month in October, contrasting the 0.13% increase registered in September. The fall in consumer prices reflected a sharp drop in prices for rents and household services and a milder drop in prices for transport, which more than offset the price increase registered in foodstuffs and non-alcoholic beverages, as well as in alcoholic beverages and tobacco.
Annual headline inflation eased from 5.4% in September to 4.1% in October, marking the lowest print since July 2012. Annual average inflation remained at September's 5.5%. As a consequence, inflation remains 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 0.16% over the previous month in October (September: +0.12% month-on-month). Annual core inflation remained at September's 2.7%.
FocusEconomics panelists see inflation ending the year at 5.1%, which is down 0.1 percentage points from last month's forecast. The panel sees 2014 year-end inflation at 5.2%, which is unchanged from last month's estimate.