Colombia: Inflation drops to the lowest level in two-and-a-half years in March
April 5, 2018
According to the National Department of Administrative Statistics (DANE), consumer prices rose 0.24% over the previous month in March, after increasing 0.71% in month-on-month terms in February. Six out of the nine sub-components recorded higher prices from the previous month, one came in flat, and the remaining two registered a decline in prices. The decline from the previous month was largely due to a sharp drop in the prices for education.
Inflation edged down from 3.4% in February to 3.1% in March—the lowest since September 2014. It remains within the Central Bank’s target band of 3.0% plus or minus 1.0%.
In March, core consumer prices—which exclude volatile items including fresh foods and fruit—rose 0.3% over the previous month. This followed a 0.7% month-on-month jump in core consumer prices in February. Core inflation fell to a nearly three-year low of 4.0% in March from 4.3% in February.
Author: Nihad Ahmed, Economist