Colombia: Inflation rebounds in March
April 5, 2013
In March, consumer prices rose 0.21% over the previous month, which more than halved the 0.44% increase observed in February. In addition, the print slightly undershot the 0.28% rise expected by LatinFocus Consensus Forecast panellists. The monthly figure mainly reflects a strong increase in prices for communications as well as for health and transport.
Building on the monthly price rise, annual headline inflation rose from 1.8% in February to 1.9% in March, ending a streak of four consecutive declines. The core inflation index, which excludes volatile items such as fresh food and fuels, added 0.18% month-on-month in March (February: +0.45 mom). Despite the increase, annual core inflation remained stable at February's 2.8%, thus remaining well anchored within the Central Bank's target of 3.0%, with a plus/minus 1.0 percentage-point tolerance margin.
According to the 2013 financial plan, the government sees inflation at 3.0% in 2013. LatinFocus Consensus Forecast participants anticipate inflation will close the year at 2.8%, which is down 0.2 percentage points from last month's forecast. For next year, the panel expects inflation to end the year at 3.1%.