Colombia: Inflation comes in at highest level since April 1999 in August
Consumer prices rose 1.02% in August over the previous month, accelerating from July’s 0.80% increase and being nearly double the market consensus. August’s result was the highest reading since April. The increase was largely due to rising prices for housing and utilities. In addition, price pressures for food and non-alcoholic beverages rose at a stronger pace.
Inflation rose to 10.8% in August, following July’s 10.2%. August’s result was the highest inflation rate since April 1999. Annual average inflation rose to 7.7% in August (July: 7.2%). Lastly, core inflation rose to 9.4% in August, from July’s 8.8%.
Diego Camacho A. and Daniel Velandia of Credicorp commented on the outlook:
“All-in, short-term pressures on inflation remain acute and thus, we are increasing our year-end estimate from 10% to 10.5%. For 2023, risks remain significant with the adjustment of the minimum wage, the pace of public spending, the path of fuel price increases and the COP behavior being key factors going forward. We now see inflation at 6.5% by Dec-23 (we had 5.5% previously).”