Colombia: Inflation stabilizes in July
August 5, 2013
In July, consumer prices remained virtually unchanged (+0.04% month-on-month). The figure was below the 0.23% increase tallied in June and slightly undershot the 0.08% rise expected by LatinFocus panellists. The June figure mainly reflected higher prices for recreation as well as for communications, which were partially offset by lower housing costs. Annual inflation remained stable at June's 2.2%.
The core inflation index, which excludes volatile items such as fresh food and fuels, added 0.22% month-on-month in July (June: +0.31% mom). As a result, annual core inflation stabilized at June'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.
The government sees inflation at 3.0% in 2013. LatinFocus Consensus Forecast participants expect that 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%.