July Inflation Registers at 1.30%

Fueled by higher food and transportationcosts, Costa Rica registered a monthlyinflation of 1.30% in July.Inflation for the first seven months of theyear was 7.64%, the National Statistics andCensus Institute (INEC) said.Inflation for the first seven months of2004 was 5.18%. Inflation in the last 12months was reported at 12.44%.Last week, the Central Bank PresidentFrancisco de Paula Gutiérrez announced thebank would tighten the country’s monetarypolicy to curb rising inflation. The measuresinclude a rise in interest rates and anincrease in the colón’s daily devaluationrate against the dollar (TT, July 30).The Central Bank originally set its 2004target inflation at less than 9% (TT, March26), but last week revised it to 11%. Ifinflation meets the new target, it will reachits highest level in six years.Annual inflation in 2003 was 9.87%.