The rise and fall of oil and fuel prices do not hit inflation in Central America as soon as in other countries. It takes about three months for this to affect the economies in Costa Rica and the Dominican Republic.
This is one of the conclusions of a study by the consulting firm EY, based on data from the central banks of the region.
The difference comes from a delay in transmission costs of production to the product or service.
According to the study, in Costa Rica, the price adjustments take up to a month to reach the final consumer, which would justify the estimated lag on inflation.
The decrease in the cost of oil imports (transportation and production) was reflected in Costa Rica in two ways: with a reduction in inflation and a stable exchange rate (due to a lower demand for foreign exchange to cover the oil bill).