In February 2023, Colombia’s 12-month inflation rate rose to 5.28%, exceeding analyst expectations. The monthly consumer price index increase was 1.14%, driven by education costs, transportation, and housing. The central bank held interest rates steady, reflecting inflationary pressures and revised forecasts for future rates.
Colombia’s consumer price index increased by 1.14% in February, resulting in a 12-month inflation rate of 5.28%, according to the National Administrative Department of Statistics (DANE). This figure exceeded the forecasts of analysts, who had predicted a mere 1% monthly increase and an annual inflation rate of 5.13%.
The annual inflation rate rose slightly from January’s 5.22%, remaining significantly higher than the central bank’s long-term target of 3%. Monthly inflation also accelerated compared to January’s increase of 0.94%. Analysts have adjusted their inflation predictions upward, forecasting a closing rate of 4.22% for 2025, higher than the previous estimate of 4%.
The significant price rises in February were driven mainly by increased education costs due to the back-to-school period, along with rising transport and housing expenses. Conversely, the information and communication sector was the sole category to experience a decline in monthly costs.
In light of inflation expectations, Colombia’s central bank decided to maintain its benchmark interest rate in January, breaking a trend of rate cuts that had been anticipated by the market. Detailed consumer price statistics for February show:
– Monthly change: +1.14% (compared to January’s +0.94%)
– Annual change: +5.28% (up from January’s +5.22%)
– Food and non-alcoholic beverages: +0.60% (down from +1.62%)
– Housing and public services: +1.16% (up from +0.39%)
Colombia’s inflation rate reached 5.28% in February, surpassing forecasts and indicating continued price pressures in the economy. The rise in costs was primarily influenced by the education sector and housing expenses. Despite these challenges, the central bank maintained its interest rates, highlighting concerns about inflation expectations. Analysts have also adjusted their forecasts, indicating potential inflation trends in the coming years.
Original Source: www.tradingview.com
