Colombia: Inflation increases to 16-month high in March
April 5, 2014
In March, consumer prices rose 0.39% over the previous month, following the 0.63% increase registered in February. March's print came in slightly above market expectations of a 0.30% price increase. The figure was mainly driven by price increases in the communication, food and health categories. Annual inflation rose from 2.3% in February to 2.5% in March, which marked the largest increase since November 2012.
The core inflation index, which excludes volatile items such as fresh food and fuels, rose 0.25% month-on-month in March (February: +0.55% month-on-month). Annual core inflation inched up from February's 2.8% to 2.9% in March, thus still remaining within the Central Bank's tolerance margin of plus/minus 1.0 percentage points around its 3.0% target.
LatinFocus Consensus Forecast participants expect that inflation will close 2014 at 2.9%, which is unchanged from last month's forecast. For 2015, the panel expects inflation to end the year at 3.1%.