Macroeconomic Forecast Costa Rica

Headline consumer price inflation in Costa Rica ticked higher in May, reaching its highest level since July 2009, at 6.2% year-on-year (y-o-y). Costa Rican inflation troughed in November last year, hitting an all-time low of 2.6% y-o-y, maintaining a gradual upward trajectory since. That said, notwithstanding the lower base set in 2009, inflation remained subdued on a month-on-month basis in recent months, rising 0.52% in May, following a moderate increase of 0.06% in April. We believe that inflationary pressures will likely remain benign (especially by historical standards) and project end-year headline inflation of 6.5%.

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