No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeArchivePrices Falling Now, Should Rise Later

Prices Falling Now, Should Rise Later

The most recent Consumer Price Index (IPC) reveals that prices are dropping for the first time since 2000, at a rate of 0.12 percent throughout May, according to the latest report from the National Statistics and Census Institute (INEC).

The results may reflect an increase in frugality, as people try and save more in case of hardships they might face in the future, said Manuel Chavez, a statistical technician with INEC.

“What the people are buying and what they’re spending is only for the basics,” Chavez said. “If I still produce a lot, but people are not buying, then prices are going to drop.”

Since January, the index is still up, with just over 1 percent inflation, the IPC indicated. Over the past year, however, the index has still posted an increase of over 9 percent – indicating the heights from which the inflation rate has fallen.

Prices fell across the board throughout May, with every indicator hovering below or just above zero.

The variation shown in the IPC is a natural outcome of the current economic difficulties, Chavez said, and prices should begin to increase as security makes its way back into the consumers’ mindsets and bank accounts.

Prices for alcoholic drinks and cigarettes – which generally register the highest rates of price inflation – were the only ones to rise more than 1 percent during the month of May. Of the other 11 sectors, eight grew at rates of disinflation – a slowing of previous inflation rates – while three sectors registered deflation.

The price of non-alcoholic drinks and food dropped the most, with prices lowering on average by 1.02 percent.

After gasoline prices rose over 6 percent during April, prices fell more than 2 percent during May.

The January through May inflation rate, which usually hovers around 5 percent, dropped to just over 1 percent. It had not dipped below 4 percent in the past four years.

 

Trending Now

Guatemala Offers Asylum to Nicaraguan Migrants Deported by U.S.

Guatemalan President Bernardo Arévalo announced on Friday that his country will grant asylum to Nicaraguan migrants deported by the United States who do not...

U.S. – Guatemala Security Pact Targets Crime and Helps Returning Migrants

U.S. Secretary of Homeland Security Kristi Noem signed a border security cooperation agreement with Guatemala on Thursday, which includes the use of drones and...

A Costa Rica Love Story: From Rustic Cabina to Separate Dreams

My Tica wife and I have been together for over a quarter century. When we met, I was living a simple life here. Three...

Costa Rica’s Top Court Bans President Chaves from 2026 Election Campaign

Costa Rica’s Supreme Electoral Tribunal on Thursday barred President Rodrigo Chaves from participating in the 2026 election campaign, ruling that he "illegitimately used" his...

2025 Gold Cup: Honduras Advances After Dramatic Shootout, Mexico Ends Goal Drought

Honduras, with a surprising and dramatic penalty shootout victory over Panama, and Mexico, with a lackluster win against Saudi Arabia, advanced Saturday to the...

Retired Nicaraguan Army Captain Sentenced to 50 Years for Treason

A retired military officer was sentenced to 50 years in prison in Nicaragua for the crime of "treason against the homeland," his family denounced...
Avatar
spot_img
Costa Rica Tours
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica