In February, consumer prices added 0.60% over the previous month, decelerating from the 0.91% rise observed in January. Higher prices for education (+4.17% month-on-month) and food (+0.66% mom) were the main drivers behind the monthly price rise. As a result, annual headline inflation inched down from 3.4% in January to 3.2% in February. The core inflation index, which excludes more volatile items such as fresh food and fuels, added 0.63% month-on-month in February. That said, annual core inflation remained flat in February at 3.1%. At its latest monetary policy meeting held on 25 February, the Central Bank raised the reference interest rate by 25 basis points to 3.25%. The hawkish move came in after nine consecutive months where rates were left at a historic low of 3.00%. As rising commodity prices exert upward pressure on inflation, the decision to raise interest rates by monetary authorities aims to assuage growing inflation concerns and anchor inflationary expectations in the longer term. Currently, inflation remains within the 1.0 percentage point tolerance margin of the Central Bank's 3.0% target.
Colombia Monetary Policy
Central Bank raises interest rate amid rising inflationary pressures
March 7, 2011
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Colombia Economic News
October 7, 2016
In what was a narrow and shocking result, Colombians rejected the peace agreement between the government and the FARC at the 2 October referendum.
September 30, 2016
In August, exports grew 7.0% over the same month last year, which sharply contrasted the 27.3% plunge recorded in July.
September 30, 2016
The seven-member board of the Central Bank (BanRep) unanimously decided to keep the reference interest rate unchanged at 7.75% at its 30 September monetary policy meeting.
September 16, 2016
Industrial production unexpectedly shrank 6.2% annually in July, which contrasted the 6.7% increase seen in June.
September 5, 2016
The Colombian economy continues to adjust to low oil prices two years after they first started to collapse.