Costa Rica saw a slight monthly inflation increase of 0.1% in January, influenced by a 7.65% rise in gas and electricity tariffs, counterbalanced by a 7.03% decrease in fuel costs. Consumer inflation remained nearly stable at -1.9% YoY. Despite several months of negative consumer inflation and core inflation below the central bank’s target range of 3% +/- 1 pp, inflation expectations are stable. Since March 2023, the bank has cut rates by 325 bps, bringing the monetary policy rate to 5.75% in January. Export sectors argue that rate cuts are insufficient, leading to real currency appreciation that negatively affects external competitiveness.