The growth in inflation affects those that are saving in colones since the colon loses purchasing power and interest rates are lower than the increase in the cost of living.
It also affects those with credit in development units, as this virtual money grows based on the consumer price index (CPI) and is hardest hit by the price of fuel because its only tax is adjusted with the CPI.
The increase in the month of October was 0.47%, which represents the largest monthly increase since May, the month which saw a 0.55%. rise.
According to a report released by the INEC, the five goods and services with the greatest contribution to the increase, two are regulated (water and transportation service) and two are agricultural products, which are closely related to climate conditions that affect supply (tomato and potato), and the fifth is coffee. Negotiated contracts for coffee in international markets have experienced a rise of more than 40% this year. Concerns about bad weather and outbreaks in major suppliers such as Vietnam and Colombia have influenced this increase.
Accumulated inflation reached 4.05% in 2009, the lowest since 1971.
The figure is calculated by the Census and Statistics Institute (INEC), based on the Consumer Prices Index (IPC).
"The Central Bank of Costa Rica had an original forecast of between 4% and 6%", reported Nacion.com. "In December alone, the prices index rose 1.02% when compared to November, the steepest monthly increase in 2009".
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