Colombia: Inflation broadly stable in August
August 22, 2012
In August, consumer prices added 0.04% over the previous month. The reading contrasted the 0.02% drop observed in July but was just in line with market expectations. The monthly figure mainly reflected how higher prices for housing more than offset lower prices for leisure as well as for transport. As a result of the monthly figure, annual headline inflation inched up from 3.0% in July to 3.1%. The core inflation index, which excludes volatile items such as fresh food and fuels, added 0.01% month-on-month in August (July: +0.24% mom). As a result, annual core inflation inched up from 3.7% in July to 3.8%, thus still within the Central Bank's target of 3.0%, with a plus/minus 1.0 percentage-point tolerance margin.