WASHINGTON: With the recent publication of Costa Rica’s consumer price index (CPI), the Census and Statistics Institute (INEC) reported an inter-annual increase in inflation of 1.64 percent in April, which is its highest level in two years. Compared to March, inflation increased 0.15 points, with higher gas prices being largely responsible for the increase in inflation. The CPI has increased steadily since February, said the INEC.
In April, of the 315 goods and services that make up the country’s consumer basket, 53 percent increased in price, 35 percent decreased and 12 percent maintained their prices. For the second consecutive month, increases in the prices of transportation, food, and non-alcoholic beverages were the largest contributors to the variation in the country’s inflation rate. Other products and services such as electricity, gasoline, public buses, avocados and lemons showed the largest increases compared to April 2016. The average rise by 2.27 percent in the price of tourist packages could be related to the devaluation of the Costa Rican colón versus the U.S. dollar, said the INEC. The growth in inflation has caused the Central Bank to raise the monetary policy rate twice this year: once today, and a previous 2.5 percent adjustment in April.
