Inflation Is Moderate, Only Prices Rise Like Mad - Costa Rica Edition

Friday, February 04, 2011

Costa Rican frog
If you think about moving to a sunny exile in order to escape the suicidal politics of perma-money-printing that has been engulfing the bigger part of this world in the last 10 yeards, better act fast or you may suffer a price shock on the way out.
Forget about any "official", i.e. doctored, inflation figures in the low single digits. In reality, prices rise like mad worldwide.
Leafing through the two latest print issues of Costa Ricas expat weekly Tico Times I stumbled about this ad posted in the January 28 edition.
Shipping a standard 40-foot container from Miami to your residence here was 4,365.22€ last week.
That has changed dramatically. Only a week later the same service is offered for 5,092.76€ Without applying any hedonic changes this is a huge 16.67% jump in a week.
So much about tame inflation. Don't expect that changing your residence could save you from the global inflationary onslaught. Bar chats revolve around the same central topic as everywhere else in the world. While official inflation is stated at 6.4% in this lovely Central American country, oldtimers here estimate it closer to 20%.

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