Colombia: Inflation falls for sixth consecutive month in January
February 4, 2017
In January, consumer prices rose 1.02% from the previous month. The reading followed the 0.42% increase recorded in December, and overshot market expectations of a 0.91% rise. According to Colombia’s National Statistics Institute (DANE), January’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 5.8% in December to 5.5% in January, which was the lowest reading since September 2015. 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 0.81% from the previous month in January, above the 0.50% rise in December. Finally, core inflation inched down was stable in January at November’s 6.2% reading.
Author: Luis Lopez Vivas, Economist