Costa Rica Deflation Eases in May

Costa Rica's consumer prices fell 0.97% year-on-year in May 2026, following a 1.64% decline in April, extending the country's deflationary trend. The decrease was mainly driven by lower prices for food (-3.89%), clothing and footwear (-2.69%), housing and utilities (-1.20%), furniture and household services (-2.04%), information and communication (-0.96%), and insurance and financial services (-0.55%). Meanwhile, the largest price increases were recorded in education (2.75%), alcoholic beverages and tobacco (2.21%), and healthcare (1.72%). On a monthly basis, consumer prices rose 0.27% in May, reversing a 0.04% decline in April.

Costa Rica’s annual inflation rate fell 1.64% in April 2026, following a 2.73% decline in the previous month. The deflationary trend was mainly driven by lower prices for food (-3.91%), transport (-3.69%), clothing and footwear (-2.58%), furniture and household services (-2.25%), and housing and utilities (-1.48%). Prices also declined for information and communication (-0.75%) and financial services and insurance (-0.51%). The strongest inflationary pressures were recorded in education (2.94%), healthcare (1.43%), and alcoholic beverages and tobacco (1.36%). On a monthly basis, consumer prices fell 0.04% in April, after a 0.34% increase in the previous month.

The annual inflation rate in Costa Rica dropped by 2.73% in February 2026, the lowest level since September 2023, after a drop in consumer prices of 2.54% in January. Deflationary pressures were mainly driven by food and non-alcoholic beverages (-8.3% versus -7.85%) and transport (-3.61% versus -2.64%). Meanwhile, price declines eased for housing and utilities (-0.44% versus -0.66%), furnishings (-1.74% versus -1.87%), recreation and culture (-0.21% versus -0.28%), and communication (-0.78% versus -1.01%). Deflation for clothing and footwear stood at -2.6%. On the other hand, price growth slowed slightly for education (2.95% versus 3.01%), accelerated for health (1.57% versus 1.44%) and alcoholic beverages and tobacco (1.04% versus 0.94%), and rebounded for restaurants and hotels (0.91% versus -0.19%). On a monthly basis, consumer prices declined by 0.22%, marking the fourth consecutive year with price declines in February and easing from a decline of 0.96% in the previous month.