Colombia: Inflation falls in July, approaches BanRep's 3.0% target
August 5, 2017
In July, consumer prices fell 0.05% from a month earlier, which came in slightly above June’s revised 0.11% reading (previously reported: +0.10% month-on-month). According to the National Department of Administrative Statistics (DANE), July’s print was largely driven by lower food and housing prices.
Inflation fell to 3.4% (June: 4.0%), which was the lowest print in nearly three years and approached the midpoint of BanRep’s 3.0% plus/minus 1.0 percentage point target band. Since climbing to a multi-year high 9.0% in July 2016, inflation has fallen continuously every month as a result of BanRep’s loose monetary policy and the fading of transitory supply shocks that had initially fueled the spike in prices.
In June, the latest month for which data is available, core consumer prices—which exclude volatile items including fresh foods and fuels—rose 0.36% from a month earlier (May: +0.19% mom). Meanwhile, core inflation fell to 6.2% in June (May: 6.4%).
Author: Christopher Thomas, Economist