Q COSTA RICA — At the end of August, inflation in Costa Rica once again registered a negative rate, according to the National Institute of Statistics and Census (INEC).
The monthly variation was -0.11%, while the accumulated variation through August 2026 was also negative, at -0.50%. Finally, the year-on-year variation through August 2026 was -0.17%.
Cheaper goods and services?
But why aren’t we feeling the savings in our wallets?
Most people don’t really feel like prices have dropped overall, even though some popular items—especially imports at big box stores—have gotten cheaper.
According to experts, negative inflation does not mean that all prices have decreased or that they have returned to the levels of previous years.
In reality, it simply means that the average price of the canasta básica alimentaria en Costa Rica (basic food basket) is slightly lower compared to the previous 12 months, explained
Another aspect to consider is that, after significant increases over several years, a small reduction does not reverse the loss of purchasing power for families. In other words, negative inflation does not compensate for previous price hikes.
For example, if a product went from 1,000 colones to 1,300 colones and then dropped to 1,270 colones, statistically there is a recent reduction, but for the consumer it is still much more expensive than before.
It is also clear that not all families consume the same products.
The Consumer Price Index (CPI) reflects the average of 289 goods and services, so it is obvious that not all families consume the same products.
The basic basket of goods and services measured by the National Institute of Statistics and Census (INEC) includes items such as airline tickets, new cars, and international travel packages, while also tracking the cost of bus transportation, housing rentals, and the prices of eggs and tomatoes, among other things.
Furthermore, economic analyst Daniel Suchar also highlights the differences in Costa Ricans’ perceptions of inflation.
“The difference lies mainly in the fact that the CPI measures the average variation of a basket of 289 goods and services, which has been strongly influenced downwards by the fall in very specific sectors, such as transportation and imported goods, thanks to the appreciation of the colón; however, the perception of households is built from ‘high-frequency inflation’, that is, day-to-day purchases, such as fresh food, rents and public services, whose nominal prices stabilized, but remained at the high level they reached after the global inflationary shock of 2022,” he indicated.
What is the basic food basket?
It is a group of essential foods and beverages that covers the basic nutritional needs of a household. It is used to measure poverty and define reduced tax policies (IVA at 1%).
Main Products of the basic food basket include grains and staples such as: rice, beans, corn, tortillas, and pasta; Milk, cheese, and meats: beef, pork, and chicken, plus eggs, canned tuna, sausages, oils, sugar, coffee, fruits, and vegetables.
The cheapest supermarket chain in Costa Rica is Palí (and its larger format, MaxiPalí), both belonging to the Walmart Central America group. Mid-range includes MegaSuper, Más x Menos, and Walmart. The high-end/gourmet supermarket chain in Costa Rica is AutoMercado.