Colombia: Inflation decelerates in August
September 6, 2011
In August, consumer prices fell 0.03% over the previous month, down from the 0.14% increase observed in July and below the 0.12% rise expected by market analysts. The monthly drop mainly reflected lower prices for entertainment as well as for food and non-alcoholic beverages, which were partially offset by higher housing and transport costs. Annual headline inflation inched down from 3.4% in July to 3.3% in August, which may prompt the Central Bank to leave interest rates on hold in the next 30 September monetary policy meeting. The core inflation index, which excludes volatile items such as fresh food and fuels, fell 0.14% month-on-month in August. This drop pushed annual core inflation down to 3.2% from 3.5% in July, which is still within the Central Bank's target of 3.0%, with a 1.0 percentage point tolerance margin.