Colombia: Inflation inches up in April
May 4, 2013
In April, consumer prices rose 0.25% over the previous month, which was slightly above the 0.21% increase tallied in March. In addition, the print overshot the 0.17% rise expected by LatinFocus panellists. The monthly figure mainly reflects higher prices for food as well as for health.
Building on the monthly price rise, annual headline inflation inched up from 1.9% in March to 2.0% in April, marking the highest reading in four months. The core inflation index, which excludes volatile items such as fresh food and fuels, added 0.29% month-on-month in April (March: +0.18% mom). As a result, annual core inflation was stable at March's 2.8%, thus remaining well anchored within the Central Bank's target of 3.0%, with a plus/minus 1.0 percentage-point tolerance margin.
According to the 2013 financial plan, the government sees inflation at 3.0% in 2013. LatinFocus Consensus Forecast participants anticipate inflation will close the year at 2.7%, which is down 0.1 percentage points from last month's forecast. For next year, the panel expects inflation to end the year at 3.1%.