Colombia: Inflation falls to two-year low
December 6, 2012
In November, consumer prices fell 0.14% over the previous month. The reading contrasted the 0.16% rise observed in October as well as market expectations of a 0.15% increase. The monthly figure mainly reflected a sharp drop in prices for food. As a result of the monthly price drop, annual headline inflation declined from 3.1% in October to 2.8%, the lowest level recorded in two years.
The core inflation index, which excludes volatile items such as fresh food and fuels, added 0.07% month-on-month in November (October: +0.16% mom). As a result, annual core inflation fell from 3.6% in October to 3.4%, thus still within the Central Bank's target of 3.0%, with a plus/minus 1.0 percentage-point tolerance margin.