Costa Rica Deflation Deepens in August

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Costa Rica’s annual deflation accelerated to 0.94% in August 2025 from 0.61% in July, the fourth straight month of price declines and the sharpest drop since March 2024. Deflation was driven by transport (-4.11%), information and communication (-3.70%), clothing and footwear (-1.76%), food and non-alcoholic beverages (-1.72%), furniture and household articles (-1.29%), and alcoholic beverages and tobacco (-0.33%). In contrast, prices rose for rent and utilities (1.15%), education (3.54%), and healthcare (1.05%). On a monthly basis, consumer prices fell 0.21%, after a 0.52% drop in July.

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