Costa Rica Inflation to End 16 Months Below Zero, Central Bank Chief Says
Costa Rica inflation has been below zero for 16 months. The central bank chief expects it to turn positive in September as fuel gets dearer. What it means. The post Costa Rica Inflation to End 16 Months Below Zero, Central Bank Chief Says appeared first on The Rio Times .
Costa Rica's central bank president, Róger Madrigal, announced on Thursday that the country's inflation should turn positive by September. The Central Bank of Costa Rica (BCCR) has kept the benchmark interest rate at 3% and expects further upward pressure on domestic prices. Inflation has remained below the central bank's target band of 3% for the past 40 months, with the last decline inside the band occurring in April 2023.
The fall in prices is mainly attributed to cheaper goods, increased local supply, and a stronger colón, which makes imports more affordable. However, consumer prices have fallen for 16 consecutive months, with diesel costing 30% more in October than in mid-August. The central bank's policy stance is described as "slightly expansionary, close to neutral," indicating mild support for growth.
The bank expects inflation to average above 2% but below 3% from mid-2026 to mid-2028, based on forecasts of higher oil and fuel prices.
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