Colombia: Inflation rises for a third time in October
November 4, 2017
According to the National Department of Administrative Statistics (DANE), consumer prices rose 0.02% from the previous month in October following an increase of 0.04% in monthly terms in September. The slight uptick in consumer prices was driven by higher prices for recreation and housing, offsetting lower prices for food and clothing.
Inflation inched up to 4.1% in October from 4.0% in September, the third rise in inflation after a full year of consecutive drops. October’s uptick led inflation to rise above the upper bound of the Central Bank’s target band of 3.0% plus or minus 1.0 percentage point for the first time since May and was widely in line with market expectations of 4.1% inflation. October’s inflation print came in shortly after the Central Bank decided to cut the benchmark interest rate 25 basis points on 27 October.
In September, the latest month for which data is available, core consumer prices—which exclude volatile items including fresh foods and fuels—rose 0.11%, falling marginally from 0.13% in August. Meanwhile, core inflation fell to 4.9% in September from 5.0% in August.
Author: Lindsey Ice, Economist