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Economy / Costa Rica

Food Inflation Spells Policy Trouble Ahead

March 2011 | Economic Analysis

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BMI View: While Costa Rica's headline consumer price index continues to show benign inflation, food prices are surging higher, posing significant challenges to the country's economic policymakers over the coming months. We believe that with little scope for higher subsidies or price caps, risks of both interest rate hikes and political unrest are rising.