Colombia: Inflation continues to free-fall at the outset of the year
February 5, 2013
In January, consumer prices rose 0.30% over the previous month. The reading followed the 0.09% increase observed in December but came in below market expectations of a 0.50% rise. The monthly figure mainly reflects a strong increase in prices for recreation as well as for health.
Despite the monthly price increase, annual headline inflation declined from 2.4% in December to 2.0% in January, the lowest level recorded since April 2010. The core inflation index, which excludes volatile items such as fresh food and fuels, added 0.36% month-on-month in January (December: +0.39 mom). As a result, annual core inflation fell from 3.2% in December to 3.0%, thus remaining within the Central Bank's target of 3.0%, with a plus/minus 1.0 percentage-point tolerance margin.