Colombia: Inflation continues to break records in July
August 5, 2016
In July, consumer prices rose 0.52% over the previous month, which was higher than the 0.48% rise registered in June. According to DANE, food items observed the largest increase over the previous month, followed by the communication and household expenses components of the price index.
Inflation climbed from 8.6% in June to 9.0% in July, the highest reading on record. Inflation is well above the Central Bank’s tolerance margin of plus/minus 1.0 percentage point around its 3.0% target. The Central Bank has been targeting high inflation with its tightening cycle that it started in September of last year.
The core consumer price index, which excludes volatile items such as fresh food and fuels, inched up in June (the last month for which data are available) to 0.62% month-on-month (May: +0.43% month-on-month). Finally, core inflation also rose from May’s 6.6% to 6.8% in June. Core inflation has followed a strong upward trend since mid-2014.
Author: Robert Hill, Economist