Colombia: Inflation closes the year at the lowest level in over two years
January 5, 2013
In December, consumer prices rose 0.09% over the previous month. The reading contrasted the 0.14% drop observed in November but came in below market expectations of a 0.30% increase. The monthly figure mainly reflected a strong increase in prices for recreation as well as for communications.
Despite the monthly price increase, annual headline inflation declined from 2.8% in November to 2.4% in December, the lowest level recorded since October 2010. In 2011, inflation closed the year at 3.7%. The core inflation index, which excludes volatile items such as fresh food and fuels, added 0.39% month-on-month in December (November: +0.07 mom). As a result, annual core inflation fell from 3.4% in November to 3.2%, thus well within the Central Bank's target of 3.0%, with a plus/minus 1.0 percentage-point tolerance margin.