Colombia Inflation (Core, ann. var. %, eop)

Inflation remains steady in February

Inflation held steady at January’s 13.3% in February. February’s figure was the highest inflation rate since March 1999, but slightly undershot market expectations. Looking at the details of the release, prices for housing and utilities rose at a faster pace in February, although prices for food and non-alcoholic beverages increased at a slower rate.

Annual average inflation rose to 11.1% in February (January: 10.7%). Meanwhile, core inflation rose to 12.2% in February, from January’s 11.8%.

Finally, consumer prices rose 1.66% in February over the previous month, moderating from January’s 1.78% rise.

February’s stable inflation rate suggests that price pressures have neared their peak. That said, our panelists expect inflation to linger at double-digit levels until Q4 due to the lagged pass-through effects of indexation and elevated inflation expectations. An upside risk is posed by sticky core inflation, which increased in February.