Colombia: Inflation falls to lowest level in over a year
August 7, 2012
In July, consumer prices fell 0.02% over the previous month. The reading contrasted both the 0.08% rise observed in June as well as market expectations of a 0.06% increase. The monthly figure reflected how lower prices for food, housing and communication more than offset higher prices across the remaining categories. As a result of the monthly price fall, annual headline inflation dropped from 3.2% in June to 3.0%, its lowest level since May 2011. The core inflation index, which excludes volatile items such as fresh food and fuels, added 0.24% month-on-month in July. As a result, annual core inflation inched up from 3.6% in June to 3.7%, thus still within the Central Bank's target of 3.0%, with a +/- 1.0 percentage point tolerance margin.