Costa Rican Central Bank ups 2008 inflation goal to 14 percent

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 price of imported goods, such as basic grains and petroleum, was directly linked to spiking prices in the first half of 2008, according to the Central Bank.

While exports grew by 6.5 percent in the first half of 2008 compared to 2007, they could not keep pace with a 28.3 percent increase in imports over the same period.

Accrued inflation is already at 6.55 percent for the year, and year-to-year inflation reached 12.82 percent at the end of June.

Despite its 14 percent projection for this year, the Central Bank is shooting to achieve 9 percent inflation for 2009.