Costa Rica inflation turns positive, ending 16-month deflationary streak

Costa Rica’s economy has reached a turning point as year-over-year inflation turned positive in September 2026, ending a 16-month period of deflation. According to the National Institute of Statistics and Census (INEC), the Consumer Price Index (CPI) recorded a modest year-over-year increase of 0.34%, the highest inflationary reading in over a year.

While the rate remains low, the shift signals a potential stabilization of consumer prices following a prolonged cycle of continuous declines. Legal experts, including Larry Hans Arroyo Vargas of Bufete de Costa Rica, suggest that businesses should proactively review commercial agreements. Incorporating inflation-adjustment and hardship clauses into long-term contracts is recommended to maintain financial equilibrium and mitigate volatility under Costa Rican mercantile law.