Colombia: Inflation jumps to almost-three-year high on weakening peso
December 5, 2014
In November, consumer prices rose 0.13% over the previous month, which came in just below the 0.16% price increase registered in October and exceeded market analysts’ expectations of a 0.08% rise. November’s reading mainly reflected higher prices for communications and recreation.
Reflecting pass-through from a weakening peso, annual inflation jumped from 3.3% in October to 3.7% in November, reaching the highest level since December 2011. Despite the acceleration, inflation remains within the Central Bank’s tolerance margin of plus/minus 1.0 percentage point around its 3.0% target.
The core inflation index, which excludes volatile items such as fresh food and fuels, increased 0.16% month-on-month in October, the last month for which data are available (September: +0.12% month-on-month). Annual core inflation inched up from September’s 2.9% to 3.0%.
Author: Armando Ciccarelli, Head of Data Solutions