Colombia: Inflation inches up in October, remaining with the Central Bank's target band
November 3, 2018
According to the National Department of Administrative Statistics (DANE), consumer prices rose 0.12% over the previous month in October, after a 0.16% month-on-month increase in September. Four out of the nine sub-components recorded higher prices, four saw a decline in prices, while the remaining category came in flat. Prices for entertainment dropped the most, while prices for housing registered the largest upturn in prices. Meanwhile, prices for education remained flat from the previous month.
Inflation inched up to 3.3% in October, from 3.2% in September. It therefore remained within the Central Bank’s target band of 3.0% plus or minus 1.0 percentage points.
In September—the latest month for which data is available—core consumer prices, which exclude volatile items including fresh food and fruit, rose 0.1% over the previous month, matching August’s print. Meanwhile, core inflation inched up to 3.6% in September, from 3.5% in August.
Colombia Inflation Forecast
Panelists participating in the LatinFocus Consensus Forecast expect that inflation will end 2019 at 3.3%, which is unchanged from last month’s forecast. For 2020, the panel also expects inflation to end the year at 3.2%.
Author: Nihad Ahmed, Economist