Colombia: Inflation inches up to over-14-year high in March
April 5, 2016
In March, consumer prices rose 0.94% over the previous month, which was a smaller increase compared to the 1.28% rise registered in February and beat market expectations of a 0.68% increase. According to DANE, prices for recreational goods and services observed the largest decrease over the previous month, which helped moderate consumer price growth in March, while the communications component of the index witnessed the largest increase in prices
Inflation increased from February’s 7.6% to 8.0% in March, thus reaching its highest level since October 2001. As a result, inflation moved further 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 March by 0.54% month-on-month (February: +1.25% mom). Finally, core inflation rose from February’s 6.3% to 6.5% March, following a steady upward trend since mid-2014.
Author: Robert Hill, Economist