Colombia: Inflation falls to eight-month low in October
November 5, 2013
In October, consumer prices fell 0.26% over the previous month, contrasting the 0.29% rise registered in September and marking the steepest decline since 1986. The decrease in October contrasted the 0.13% increase that markets had expected and mainly reflected declining prices for food and recreation. Annual inflation fell from 2.3% in September to 1.8% in October, reaching the lowest level since February 2013.
The core inflation index, which excludes volatile items such as fresh food and fuels, rose 0.04% month-on-month in October (September: +0.20% mom). Annual core inflation inched down from September's 2.8% to 2.7% in October, thus remaining well anchored within the Central Bank's tolerance margin of plus/minus 1.0 percentage-points around its 3.0% target.
The government sees inflation at 3.0% in 2013. LatinFocus Consensus Forecast participants expect that inflation will close the year at 2.6%, which is unchanged from last month's forecast. For next year, the panel expects inflation to end the year at 3.1%, which is also unchanged over the previous month's estimate.