Costa Ricans are worried about the high cost of living:

The world faces a complex situation, and Costa Rica is no exception. The economic crisis caused by the COVID-19 pandemic has been devastating. The impact of its effects on Costa Rican households has been severe. Some people recover slowly, while others try to find their way.

Costa Rica, which already had a faltering economy after several disastrous governments, has been hit by the consequences of global disasters.

It must be considered that Costa Rica is an indebted country with a huge state apparatus. This hinders and complicates the country’s recovery.

In January 2022, the Association of Economic Sciences presented an analysis of the expectations of the Costa Rican economy in 2022. The high cost of living, unemployment and the fight against corruption were the main concerns of Costa Ricans at the time.

As of June 2022, fuel has increased by an average of ₡181 over the past six months. For example, in December 2020, filling a 30 liter tank with super gasoline would cost ₡16560; in June 2022, this same number of liters cost ₡21,900, which is ₡5340 more.

On Friday August 5, the Public Services Regulatory Authority (ARESEP) announced a new increase in gasoline prices.

While the conflict between Russia and Ukraine has affected fuel prices, Costa Rica has an extremely high tax rate which makes it even more expensive.

“My salary is not enough”, “everything is too expensive”, “I can no longer buy the whole shopping list” are some of the comments on social networks.

In addition, many people said they were preparing for an increase in bus fares, although this was not announced. “I imagine bus fares will already go up,” one social media user said in response to the petrol hike.

“I go to work to pay for gas,” another social media user said.

With previous increases in gas prices, bus company owners announced price increases and even canceled some schedules or routes.

Where we go from here is anyone’s guess.

About Matthew Berkey

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