Colombia: Inflation rises in May
Consumer prices increased 1.00% in May over the previous month, picking up from April’s 0.59% rise. May’s upturn was largely attributed to higher prices for food and non-alcoholic beverages.
Inflation accelerated to 3.3% in May, following April’s 2.0% increase marking the highest reading in over a year and landing above the midpoint of the Bank’s 2.0–4.0% target range. Annual average inflation remained stable at April’s 1.9%. Lastly, core inflation came in at 2.8% in May from the previous month’s 2.0% increase.
Commenting on the inflation outlook, Sergio Olarte and Jackeline Piraján, economists at Scotiabank, said:
“Inflation is normalizing at a somewhat faster pace than generally expected since traditional indexation rules have been re-imposed on some regulated prices and increased domestic demand has pushed up key prices for some services and rents. We project inflation to exceed the BanRep’s 3% y/y target sooner than previously expected.”