San José, Costa Rica, since 1956

Inflation rate continues to fall in Costa Rica

The fast-rising inflation that characterized most of 2008 has continued to fall since its high six months ago, bringing the monthly inflation rate to nearly half of April´s 10-year average, according to a report released Tuesday by the National Statistics and Census Institute (INEC).

The Consumer Price Index rose 11.75 percent since May of last year, falling from a high of 16.3 percent yearly change in November, according to the INEC report. April´s monthly increase was 0.33 percent.

The report indicated that the prices for luxury goods, like alcoholic beverages and tobacco, rose most significantly in April, a 3 percent increase; prices for necessities like food and non-alcoholic beverages actually dropped about 0.46 percent.

While inflation has been slowing, the yearly price increase of 11.75 percent the report cited is actually slightly above par – the third highest in the past decade. The number accentuates just how high inflation was throughout 2008, since the past five months have logged price inflation far below average.

Prices for gasoline rose 6.4 percent, while the cost of electricity rose 1.6 percent, the INEC reported.

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