President Arias Wary Of
Inflation
Reuters - Costa Rican
inflation in 2008 will
likely exceed the
central bank's 9 percent
target because of
international food and
energy prices, President
Oscar Arias told Reuters
on Wednesday.
"It will be difficult
for us to have an
inflation rate of 8 or 9
percent as we had
planned in the monetary
program," he told the
Reuters Latin America
Investment Summit.
Inflation across Latin
America has jumped over
the past few months as
rapidly developing
economies like India and
China boost global
demand for food and
commodities.
Costa Rica had hoped to
pull inflation down from
10.8 percent last year.
Meanwhile, an expected
economic downturn in the
United States, Costa
Rica's top trading
partner, is seen putting
a damper on growth
across Central America.
"As a small economy that
depends highly on what
happens in the United
States, we're certainly
going to be affected a
bit," Arias said.
Costa Rica's central
bank has said it expects
the economy to grow 3.8
percent this year, down
from 6.8 percent in
2007. |
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