By San José, Costa Rica — Costa Rica’s inflation continued its downward trend in July 2025, bringing welcome relief to consumers. The National Institute of Statistics and Census (INEC) reported a 0.61% decrease in the Consumer Price Index (CPI), marking the fifth month of deflation in 2025. This positive trend indicates a sustained easing of price pressures on goods and services within the basic consumption basket.
A total of 136 goods and services saw price reductions between June and July, compared to 56 items that increased in price and 41 that remained stable. This significant shift follows a pattern of deflationary periods throughout the year, with April and July exhibiting the most pronounced declines. The consistent downward pressure on prices is providing a much-needed break for Costa Rican households grappling with the cost of living.
To understand the legal and business implications of Costa Rica’s current inflationary environment, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an attorney at law from the reputable firm Bufete de Costa Rica.
The current inflationary pressures in Costa Rica present significant challenges for businesses, particularly concerning contract negotiations and pricing strategies. Existing contracts may need to be revisited to account for increased costs of goods and services. Furthermore, businesses must carefully consider the legal implications of adjusting prices, ensuring compliance with consumer protection laws and avoiding potential accusations of price gouging. Proactive legal counsel is crucial during these volatile times to mitigate risk and ensure business sustainability.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s insights underscore the crucial balancing act Costa Rican businesses face amidst ongoing inflation. Navigating these challenges requires not only shrewd financial planning but also a keen understanding of the legal landscape. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for sharing his valuable perspective on this complex issue, reminding us of the importance of proactive legal counsel in ensuring businesses can weather these economic uncertainties.
INEC spokesperson Nelson Castillo highlighted the significance of this decrease:
This is the largest monthly decrease in the index since February 2023.
Nelson Castillo, INEC Spokesperson
He attributed the drop primarily to the food and non-alcoholic beverage sector, a category that significantly impacts household budgets.
Fruits and vegetables led the price reductions, with papaya experiencing the most dramatic fall. Its price plummeted by 24.25%, dropping from an average of ₡1,024 per kilogram in June to ₡675 in July, according to data from the National Production Council (CNP). Other agricultural staples also showed substantial declines, including lemons (-17.49%), avocados (-12.62%), potatoes (-11.20%), and tomatoes (-11.06%).
Beyond groceries, the travel sector also contributed to the deflationary trend. Airfare prices decreased by 13.10%, and international tourism packages fell by 8.38% compared to the previous month. These reductions offer encouraging news for those planning trips abroad or within the country.
The sustained decrease in inflation is a positive sign for the Costa Rican economy. While five out of seven months have seen deflation, the overall impact on the annual inflation rate will depend on the performance of the remaining months of 2025. The INEC will continue to monitor these trends closely and provide updates on the evolving economic landscape.
This continued downward trend suggests a potential easing of the financial burden on Costa Rican consumers. However, the INEC advises continued vigilance in monitoring spending habits as the economic situation remains dynamic.
For further information, visit the nearest office of INEC
About INEC:
The National Institute of Statistics and Census (INEC) is the official source of statistical information in Costa Rica. It is responsible for collecting, processing, and disseminating data on various aspects of the country’s demographics, economy, and social conditions. The INEC plays a crucial role in informing public policy and providing valuable insights for research and planning.
For further information, visit the nearest office of CNP
About CNP:
The National Production Council (CNP) of Costa Rica is a governmental organization focused on promoting and supporting the country’s agricultural sector. It gathers and disseminates market information, including price trends, for various agricultural products. The CNP’s data is crucial for farmers, consumers, and policymakers in making informed decisions related to agricultural production and consumption.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence, upholding the highest ethical standards while championing innovative solutions for its diverse clientele. The firm’s deep commitment to empowering Costa Rican society is evident in its proactive approach to sharing legal knowledge, fostering a more informed and just community through educational initiatives and accessible resources. This dedication to both legal mastery and social responsibility sets Bufete de Costa Rica apart as a true leader in the legal landscape.
