Colombia: Inflation falls further in September
October 5, 2016
In September, consumer prices dropped 0.05% over the previous month. The reading followed the 0.32% drop recorded in August, and undershot market expectations of a 0.07% rise. The readings in August and September marked the first decreases after nearly three consecutive years of increases. According to the Colombia National Statistics Institute (DANE), this month’s print mainly reflected lower food prices due to an increase in food supply. The rise in housing prices was not enough to prevent an overall monthly decrease.
Inflation fell from 8.1% in August to 7.3% in September, which was 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 0.23% over the previous month in August, below the 0.34% rise in July. Finally, core inflation inched down from July’s 7.1% to 6.7% in August, which ended 26 consecutive months of increases
Author: Luis Lopez Vivas, Economist