Colombia: Inflation stable in April
May 5, 2017
In April, consumer prices rose 0.47% from the previous month, which mirrored March’s result and overshot market expectations of a 0.38% reading. According to Colombia’s National Statistics Institute (DANE), April’s print mainly reflected higher prices for housing and transport.
Inflation reached a multi-year high of 9.0% in July but has continuously fallen as a result of the Central Bank’s tightening cycle last year as well as to the fading of temporary supply shocks that had fanned prices pressures in the past. In April, inflation came in at March’s 4.7%, the lowest print since July 2015. However, inflation is still well above the Central Bank’s tolerance margin of plus/minus 1.0 percentage point around its 3.0% target.
Core consumer prices, which exclude volatile items such as fresh food and fuels, increased 0.53% from the previous month in April, slightly above the 0.52% rise recorded in March. Finally, core inflation was stable in April at March’s 4.7% reading.
Author: Luis Lopez Vivas, Economist