Central Bank Ups Inflation Outlook to 14%

Pointing to “external shocks” and an increase in the colón-dollar exchange rate, the Central Bank revised its projections for year-end inflation, moving its target from 8 percent to 14 percent.

The rising prices of imported goods, such as basic grains and petroleum, were directly linked to spiking prices in the first half of the year, according to the Central Bank.

While exports grew by 6.5 percent in the first half of 2008 compared to the same period last year, they could not keep pace with a 28.3 percent increase in imports.