Colombia: Inflation inches eases slightly from March's 14-year high
May 6, 2016
In April, consumer prices rose 0.50% over the previous month, which was a smaller increase compared to the 0.94% rise registered in March and undershot market expectations of a 0.61% increase. According to DANE, food prices observed the largest increase over the previous month, while the living expenses component of the index witnessed the only decrease in prices.
Inflation inched down from 8.0% in March, which had marked the highest reading in 14 years, to 7.9% in April. Inflation is still well above the Central Bank’s tolerance margin of plus/minus 1.0 percentage point around its 3.0% target.
The core consumer price index, which excludes volatile items such as fresh food and fuels, increased in April by 0.70% month-on-month (March: +0.54% mom). Finally, core inflation rose from March’s 6.5% to 6.7% April, following a steady upward trend since mid-2014.
Author: Robert Hill, Economist