Colombia: Inflation falls for fifth consecutive month in December
January 6, 2017
In December, consumer prices rose 0.42% from the previous month. The reading followed the 0.11% increase recorded in November, and came close to market expectations of a 0.12% rise. According to Colombia’s National Statistics Institute (DANE), December’s print mainly reflected higher prices for food and housing—the two categories with the largest weight in the consumer price index.
Inflation reached an all-time high of 9.0% in July and began to fall in August. It continued to fall from 6.0% in November to 5.8% in December, which is the lowest reading so far this year. However, inflation is still well above the Central Bank’s tolerance margin of plus/minus 1.0 percentage point around its 3.0% target.
Core consumer prices, which exclude volatile items such as fresh food and fuels, increased 0.50% from the previous month in December, above the 0.29% rise in November. Finally, core inflation inched down from November’s 6.3% to 6.2% in December.
Author: Luis Lopez Vivas, Economist