Costa Rica Inflation Turns Positive at 0.34%
Economy: Costa Rica
Key Facts
—Who. INEC, Costa Rica’s national statistics institute, which publishes the consumer price index (CPI), the country’s main inflation gauge.
—What. Prices rose 0.34% in the 12 months to September 2026, after a 0.17% fall in the year to August. Prices rose 0.11% in the month itself.
—Where. Costa Rica, a Central American economy popular with US tourists, retirees and remote workers.
—When. Published on Wednesday 7 October 2026. It ends 16 straight months of yearly price falls, the first yearly rise since April 2025.
—US link. US visitors and retirees spend in colones, so local price trends feed straight into their costs.
—Status. Official INEC figures. Economists in the EODHD calendar had expected 0.5% for the year, so the result was a little lower.
—As of. 7 October 2026, 23:24 GMT.
Costa Rica’s consumer prices rose 0.34% in the 12 months to September 2026, the first yearly increase since April 2025. The national statistics institute said on Wednesday 7 October that a 16-month run of falling prices is over.
The change is small, and prices are still below where the central bank wants them. It still matters to anyone who invests in, visits or moves money to Costa Rica, because deflation (falling prices) has shaped the economy since mid-2025.
What We Know
INEC reported a monthly rise of 0.11% in September, after a fall of 0.11% in August. Over the first nine months of 2026, prices are still 0.39% lower, compared with a fall of 1.95% in the same period of 2025.
The yearly rate was minus 0.17% in August and minus 0.28% in July. It last stood above zero in April 2025, when it was 0.37%.
The low point of the run came early this year, with minus 2.73% in February. Since then the yearly rate has climbed in every month, and September completes the turn.
INEC now calculates the index on a new base, with June 2026 equal to 100 and a basket of 293 goods and services. Of those items, 42% fell in price in September, 33% rose and 25% did not change.
What Pushed Prices Up and Down
INEC says the monthly rise came mainly from transport, information and communication, and housing and utilities. Eight of the 13 groups in the index rose, led by information and communication at 0.47% and transport at 0.23%.
The items with the biggest upward effect were chicken eggs (up 18.12%), new vehicles (up 1.57%) and mobile phone service (up 1.55%). Housing rent rose 0.43% and papaya 28.91%, and INEC also names diesel among the increases.
Petrol fell 1.45%, airfares abroad 6.37% and tomatoes 9.10%. Onions fell 10.16% and sweet peppers 11.68%, and recreation, sport and culture was the weakest group at minus 0.67%.
Goods prices rose 0.20% in the month and services 0.01%. Energy prices fell 0.53%, and prices excluding food and energy rose 0.18%.
Why the Central Bank Is Watching
Costa Rica’s central bank targets inflation of 3%, with a tolerance range of 2% to 4%. Inflation has been below that range for more than three years, and it was last inside it in April 2023, according to the news site Delfino.
On Thursday 24 September the bank’s board kept its policy rate at 3%. It cited oil-transit disruptions in the Middle East, the war in Ukraine, a possible El Niño weather effect on food output and slower domestic growth.
The board said it expects price growth to move close to the 3% target over the medium term. Our earlier report on the bank president’s forecast of a positive September is here, and our look at four years of weak prices gives the longer background.
La Nación reports that the board’s next scheduled policy meeting is on Thursday 26 November. It is the last meeting of the year, according to the same report.
What Is Not Known
INEC does not say whether the rise will last. Part of it comes from items such as eggs and papaya, which can swing sharply from month to month.
It is also unclear how much of the change comes from the new index base used since this year. We have not seen an official comparison of old and new methods for September.
What It Means for US Readers and Investors
For US investors, the end of deflation lowers the pressure on the central bank to cut rates further. A policy rate that stays near 3% matters for anyone holding colón deposits or bonds, and for the exchange rate that US visitors face.
For travellers and expats, the first yearly price rise since April 2025 is not a cost shock, since it is under half a percent. More on living costs and prices is in our Costa Rica coverage.
The next test is the October reading from INEC. A second positive month would suggest that the turn is real.
Frequently Asked Questions
Did Costa Rica have deflation in 2026?
Yes, until August. Consumer prices fell year on year for 16 straight months, and INEC reported on 7 October 2026 that the yearly rate was 0.34% in September.
What was Costa Rica’s inflation rate in September 2026?
INEC reports 0.34% for the 12 months to September and 0.11% for the month. Over the first nine months of the year, prices are 0.39% lower.
What is the central bank’s inflation target?
The Banco Central de Costa Rica targets 3%, with a tolerance range of 2% to 4%. Inflation was last inside that range in April 2023, according to Delfino.
Does this change the policy rate?
Not by itself. The board kept the rate at 3% on 24 September, and it says it expects inflation to move closer to its 3% target over the medium term.
Sources
INEC Costa Rica, IPC setiembre 2026 · Banco Central de Costa Rica, 24 September decision · La Nación · Delfino.cr · La Nación, central bank meeting calendar
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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief