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Costa Rica With the Highest
Inflation Rate in Latin America
The Banco Central De Costa Rica
(BCCR) - Central Bank -
recognizes that the high cost of
living is hitting Costa Ricans
hard.
Inflation in 2004 closed at 13%,
higher than the BCCR's estimate
which saw the highest interest
rates in the last seven years.
And figures for the first four
months of 2005 are not very
encouraging.
According to information
released by the BCCR, this month
the economy is stable but
inflation is rising. "Our task
is to keep inflation down, but
the results of the first four
months of this year is nothing
to gloat about...", said
Francisco de Paula Gutiérrez,
president of the BCCR.
The direct causes of rising
inflation, according to the BCCR,
are:
1. the high price of coffee
2. the increase in the cost of
crude oil on world markets
3. the high cost of electricity
Gutiérrez said Costa Rica has
one of the highest inflation
rate in Latin America and as a
result the high cost of living
and is not being absorbed by
exports and tourism. According
to the president of the BCCR
president, "tourism is not pay
for the high cost of gasoline."
Gutiérrez added that strict
monetary controls will continue,
but urges the passing of the
Reforma Fiscal - Tax Plan.
The BCCR's goal is to keep
inflation at the 10% level.
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