Colombia: Inflation rises for the first time in a year in August
September 5, 2017
Consumer prices rose 0.14% from the previous month in August after falling 0.05% in July, according to the National Department of Administrative Statistics (DANE). August’s print was predominantly driven by higher housing and healthcare prices.
Inflation rose to 3.9% in August from July’s nearly three-year low of 3.4%, marking the first rise in inflation after a full year of continuous declines. The print came in above market expectations of 3.8% and now lies closer to the upper bound of the Central Bank’s target band of 3.0% plus or minus 1.0 percentage point. August’s inflation comes after the Central Bank began slowing its easing cycle in July and August, with smaller rate cuts of 25 basis points both months (previous cuts were of 50 basis points). The increase was primarily driven by higher prices for education, healthcare and housing compared to the previous year.
In July, the latest month for which data is available, core consumer prices—which exclude volatile items including fresh foods and fuels—came in flat from a month earlier (June: +0.36 month-on-month). Meanwhile, core inflation inched down to 5.2% in July (June: 5.3%).
Author: Lindsey Ice, Economist