Macroeconomic Forecast Costa Rica

BMI View: Our view that inflation was set to come down this year in Costa Rica has been vindicated by the data released thus far in 2007. Consumer prices rose by 9.17% y-o-y, the second-lowest reading in four years, and inflation has remained in single digits in each month of the year so far. The major catalyst has been the relaxation of the currency peg, which has allowed the central bank to target inflation more effectively. We reiterate our forecast for 8.0% consumer price inflation by year-end, which would be down from 9.4% in

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