Colombia: Inflation continues to mount
August 5, 2011
In July, consumer prices climbed 0.14% over the previous month, down from the 0.33% increase observed in June (previously reported: +0.32 month-on-month) but in line with market expectations. As a result, annual headline inflation stepped up from 3.2% in June to 3.4% in July. The monthly increase mainly reflected higher prices for food and non-alcoholic beverages, as well as for healthcare costs, which were partially offset by lower transport prices. The core inflation index, which excludes volatile items such as fresh food and fuels, increased 0.15% month-on-month in July, pushing annual core inflation to 3.5% (June: +3.4% year-on-year), still within the Central Bank's target of 3.0%, with a 1.0 percentage point tolerance margin.