Inflation During The
Last 12 Months Hit
12.82%
The Instituto Nacional
de Estadística y Censos
(INEC) - national
statistics and census
board - said yesterday
that the accumulated
inflation for the last
12 months was 12.82%.
The month with the
highest inflation was
last month, June, at
1.4%, placing the
inflation for the first
six months of the year
at 6.55%, which is
pretty close to the
predictions of the Banco
Central de Costa Rica (BCCR)
- Central Bank - of
between 7% and 9% for
the entire year.
Francisco de Paula
Gutiérrez, president of
the Central Bank said
that the high inflation
rate is mainly due to
the rising cost of crude
oil and food, which
could not have been
foreseen.
The Central Bank is
expected to revise the
economic outlook for the
country during this
month.
Food costs alone have
increased 23.61% over
the last year. What that
means in real terms is
that a family living on
an income of ¢100.000
colones a year ago,
today needs ¢123.610
colones to stay even.
Gutiérrez said that the
items with the greatest
increase were eggs,
bread and beans, all
items making up part of
the basic food basket.
The situation, according
to the Central Bank
head, affects mainly the
poor, which have to now
dedicate a greater
amount of their income
to food, which in many
cases means spending up
to 45% of their income
to keep fed.
The Central Bank is
expected to apply a
restrictive police which
can include reducing the
amount of cash in
circulation to influence
a reduction in the
demand and to reduce the
pressure on internal
prices.
For economist William
Calvo, the second half
of the year should see a
reduction in the
inflation. Last year
prices during the second
half of the year shot
up, however, according
to Calvo, the same is
not expected for this
year.
Gutiérrez added that it
is difficult to predict
what is coming, all
depending on the price
of petroleum and its
effect on food prices. |
