Monday 25 September 2023

Decrease in the cost of fuels and other food items is the reason behind the downward inflation

The Central Bank predicts that it will stay within its designated range for the rest of 2023.

Paying the bills

Latest

“Liar”, “corrupt”: Words Ticos associate with Chaves

QCOSTARICA (Crhoy) Since Rodrigo Chaves Robles took office in...

“There is a competition between left and right populism on the continent”

Q24N -- Populism, “an unwanted child of democracy,” is...

President Chaves to visit Panama amid migration crisis

QCOSTARICA -- Costa Rica's President Rodrigo Chaves is planning...

Fatphobia in Costa Rica out of control

QCOSTARICA -- In the era of social media, where...

Is Costa Rica’s ‘Blue Zone’ vanishing?

QCOSTARICA -- The shrinking of Costa Rica’s Blue Zone...

Costa Rica clarifies tax treatment of crypto-assets

QCOSTARICA - Costa Rica's tax authority - issued a...

U.S. Returns Historical Indigenous Artifacts to Costa Rica

QCOSTARICA -- NBC6 Miami reports that several pre-Columbian artifacts...

Dollar Exchange

¢538.05 BUY

¢543.60 SELL

23 September 2023 - At The Banks - Source: BCCR

Paying the bills

Share

Q COSTA RICA – This year saw a dip in the prices of fuels and lubricants, as well as other staples like tomatoes, meat, bread, and coffee, which in turn caused a decreased rate of inflation.

The prices of fuels and lubricants, as well as other staples like tomatoes, meat, bread and coffee, declined in the course of this year, resulting in a lower inflation rate.

- Advertisement -

However, the following items saw an increase in cost: sugar (7.4%), oil (6.4%), flour (2.6%) and oats (2.1%).

Daniel Suchar, an independent economist, commented that the recent decrease in figures is a positive development.

“The drop is good news for the pockets of Costa Ricans, especially after the very high figures that were reported last year and this should be reflected in interest rates,” said Suchar.

Lower inflation has been reflected in lower interest rates, the Central Bank (Banco Central de Costa Rica – BCCR) has been decreasing its monetary policy rate, however, highlighted that there are risks that could cause inflation to increase in the medium term.

The primary risks come from disruptions in supply caused by extreme weather events and hikes in the cost of raw materials.

Inflation has an immediate influence on the choices the monetary authority makes in regard to altering interest rates, as well as a direct correlation to the rate of exchange.

- Advertisement -

Gerardo Corrales, an economist from Economía Hoy, argued that the Central Bank should not maintain its monetary policy rate at such a high level, given that inflation has been declining for an extended period of time and this can have a detrimental impact on production and overall economic growth.

“I believe that the Central Bank has no reason to continue keeping the monetary policy rate so high since inflation has been falling for months,” said Corrales.

Elizabeth Morales, assistant manager of Coopecaja, commented that “the decrease in inflation could provide Costa Rican families with a period of relief, potentially creating an opportunity to save or pay off debts”.

Experts advise that in order to manage finances effectively, it is necessary to plan ahead and determine how the money will be allocated over the upcoming months. This will ensure that all necessary expenses are taken care of and nothing exceeds the amount of income that is available.

- Advertisement -
Paying the bills
Avatar photo
Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

“There is a competition between left and right populism on the continent”

Q24N -- Populism, “an unwanted child of democracy,” is here to...

President Chaves to visit Panama amid migration crisis

QCOSTARICA -- Costa Rica's President Rodrigo Chaves is planning to head...

Subscribe to our stories

To be updated with all the latest news, offers and special announcements.

%d bloggers like this: