Excess Dollars Cause Inflation
The battle against inflation is
lagging behind because of an excess of dollars in the market, according
to analysts.
The Central Bank is receiving more dollars than expected; therefore,
diminishing the effects of the efforts to lower inflation and forcing a
review of the monetary policy.
According to the Central Bank, the reserves are now above $1.7 billion,
while the goal was $1.6 billion. The excess dollars pressure prices in
colones up, according to experts.
Last year, the inflation reached 13.13 percent, after five consecutive
years in which it had been 10 percent. Even though the Central Bank aims
at 10 percent for 2005, it is doubted that this goal will be attained,
particularly because the cumulate inflation for January and February was
3.08 percent.
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