Colombia: Inflation breaks over-15-year record
June 6, 2016
In May, consumer prices rose 0.51% over the previous month, which was marginally greater than the 0.50% rise registered in April and overshot market expectations of a 0.40% increase. According to DANE, living expenses experienced the largest increase over the previous month, followed by the health and other expenses component.
Inflation climbed from 7.9% in April to 8.2% in May, the highest reading since January 2001. Inflation is well above the Central Bank’s tolerance margin of plus/minus 1.0 percentage point around its 3.0% target.
The core consumer price index, which excludes volatile items such as fresh food and fuels, inched down in May to 0.43% month-on-month (April: +0.70% month-on-month). Finally, core inflation also moderated from April’s 6.7% to 6.6% in May, although it has generally followed an upward trend since mid-2014.
Author: Robert Hill, Economist