Colombia: Inflation hits six-month high in June
July 5, 2013
In June, consumer prices rose 0.23% over the previous month. The figure was slightly below the 0.28% increase tallied in May but overshot the 0.21% rise expected by LatinFocus panellists. The monthly figure mainly reflected higher prices for recreation as well as for housing.
Building on the monthly price rise, annual headline inflation rose from 2.0% in May to 2.2%, which marks the highest level observed since December 2012. The core inflation index, which excludes volatile items such as fresh food and fuels, added 0.31% month-on-month in June (May: +0.14% mom). As a result, annual core inflation inched up from 2.7% in May to 2.8% in June, thus remaining well anchored within the Central Bank's target of 3.0%, with a plus/minus 1.0 percentage-point tolerance margin.
The government sees inflation at 3.0% in 2013. LatinFocus Consensus Forecast participants anticipate inflation will close the year at 2.6%, which is unchanged from last month's forecast. For next year, the panel expects inflation to end the year at 3.1%.