Colombia: Inflation comes in at highest level since March 1999 in September
Inflation came in at 11.4% in September, up from August’s 10.8%, exceeding market expectations. September’s figure represented the highest inflation rate since March 1999. Looking at the details of the release, the prices for housing and utilities grew at faster rates in September, as did those for food and non-alcoholic beverages.
The trend pointed up, with annual average inflation coming in at 8.3% in September (August: 7.7%). Meanwhile, core inflation rose to 10.0% in September, from the previous month’s 9.4%.
Finally, consumer prices increased 0.93% in September over the previous month, below the 1.02% increase seen in August.
Diego Camacho A. and Daniel Velandia of Credicorp commented on the outlook:
“All-in, short-term pressures on inflation will remain acute. The increase of the minimum wage, the pace of public spending, the path of fuel price increases and the COP behavior will be key factors going forward. We have adjusted our year-end inflation estimate from 10.5% to 11.5%, and we are maintaining our estimate of 6.5% for 2023.”