Colombia: Inflation falls to lowest level since 1955
December 6, 2013
In November, consumer prices fell 0.22% over the previous month following the 0.26% drop registered in October. The decrease in November contrasted the 0.08% increase that markets had expected and mainly reflected declining prices for food and housing. Annual inflation inched down to 1.76% in November (October: 1.84%), thus reaching the lowest level since November 1955.
The core inflation index, which excludes volatile items such as fresh food and fuels, rose 0.18% month-on-month in November (October: +0.04% month-on-month). Annual core inflation inched up from October's 2.7% to 2.8% in November, thus remaining well anchored within the Central Bank's tolerance margin of plus/minus 1.0 percentage points around its 3.0% target.
The Central Bank sees inflation at 3.0% in 2013. LatinFocus Consensus Forecast participants expect that inflation will close the year at 2.5%, which is down 0.1 percentage points from last month's forecast. For next year, the panel expects inflation to end the year at 3.0%, which is unchanged over the previous month's estimate.