Colombia: Inflation picks up in June on the back of higher food prices
July 6, 2011
In June, consumer prices climbed 0.32% over the previous month, up from the 0.28% increase observed in May and above markets expectations of a 0.22% rise. As a result, annual headline inflation stepped up from 3.0% in May to 3.2% in June. The monthly increase mainly reflected higher prices for entertainment as well as for food and non-alcoholic beverages, which represent the most significant component in the calculation of the consumer price index. The core inflation index, which excludes volatile items such as fresh food and fuels, increased 0.46% month-on-month in June, pushing annual core inflation to 3.4% (May: +3.1% year-on-year), above the Central Bank's 3.0% target, with a 1.0 percentage point tolerance margin.