Colombia: Inflation picks up in May on the back of higher food prices
June 3, 2011
In May, consumer prices climbed 0.28% over the previous month, up from the 0.12% increase observed in April and above markets expectations of a 0.20% rise. As a result, annual headline inflation stepped up from 2.8% in April to 3.0% in May. The monthly increase mainly reflected higher prices for food and non-alcoholic beverages, which represent the most significant component in the calculation of the consumer price index, along with clothing and footwear. Meanwhile, the core inflation index, which excludes volatile items such as fresh food and fuels, increased 0.28% month-on-month in May, prompting annual core inflation to inch up to 3.1%, slightly above the Central Bank's 3.0% target, with a +/- (adjust to other countries) 1.0 percentage point tolerance margin.