Colombia: Inflation stabilises in May
June 5, 2013
In May, consumer prices rose 0.28% over the previous month, which was slightly above the 0.25% increase tallied in April. In addition, the print overshot the 0.23% rise expected by LatinFocus panellists. The monthly figure mainly reflects higher prices for housing, which more than offset lower prices for recreation.
Building on the subdued price rise, annual headline inflation remained stable at April's 2.0%. The core inflation index, which excludes volatile items such as fresh food and fuels, added 0.14% month-on-month in May (April: +0.29% mom). As a result, annual core inflation inched down from 2.8% in April to 2.7% in May, 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 2.6%, 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%.