Colombia Inflation May 2017

Colombia

Colombia: Inflation falls in May

June 5, 2017

In May, consumer prices rose 0.23% from the previous month, which was below April’s 0.47% reading and market expectations of a 0.32% increase. According to Colombia’s National Statistics Institute (DANE), May’s print was mainly driven by higher prices for food and housing.

In May, inflation came in at 4.4%, which is the lowest reading since July 2015. Since reaching a multi-year high of 9.0% in July last year, inflation has continuously fallen as a result of the Central Bank’s tightening cycle as well as the fading of temporary supply shocks that had fanned price pressures in the past. However, inflation is still 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 0.19% from the previous month in May, slightly below the 0.53% rise recorded in April. Finally, core inflation was stable in May at April’s 6.4% reading.

Panelists participating in the LatinFocus Consensus Forecast expect that inflation will close 2017 at 4.2%, which is up 0.1 percentage points from last month’s forecast. For 2018, the panel expects inflation to end the year at 3.4%.


Author:, Economist

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Colombia Inflation May 2017

Note: Year-on-year and month-on-month variation of cons. price index in %.
Source: Colombia National Statistical Institute (DANE).


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