Average inflation in Costa Rica

It is the average annual inflation rate for Costa Rica: the average change in consumer prices over the year, distinct from the year-end rate. It measures the average rise in the household basket of goods and services across the full year.

It is calculated by comparing the average consumer price index level of one year with the previous one, based on regular price collection across a sample weighted by household spending. Comparable cross-country figures come from the IMF's annual estimates.

Inflation is the central variable for the Banco Central de Costa Rica, which sets an inflation target and adjusts its policy rate accordingly. An above-expected reading tends to favour higher rates and puts pressure on the colón.

It is a low-frequency, revisable figure. As an annual average it smooths intra-year moves and can delay the signal of recent turning points; energy and food prices add volatility, so the core rate is also monitored.