Colombia: Inflation inches up in August
September 5, 2013
In August, consumer prices rose 0.08% over the previous month, following the minimal 0.04% rise registered in July. The figure was above the 0.02% rise LatinFocus panelists had expected. The August figure mainly reflected higher prices for healthcare and housing, which were offset by lower prices for recreation. Annual inflation inched up from 2.2% in July to 2.3% in August.
The core inflation index, which excludes volatile items such as fresh food and fuels, fell 0.02% month-on-month in August (July: +0.22% mom). Annual core inflation was unchanged at July's 2.8%, thus remaining well anchored within the Central Bank's tolerance margin of plus/minus 1.0 percentage-point 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%.
Author: Carl Kelly, Economist