Colombia’s annual inflation rate fell to 5.05% in May 2025, the lowest since October 2021, driven by reduced inflation in transportation, housing, and services. Monthly consumer prices rose by only 0.32%, missing expectations, indicating continued progress in controlling inflation despite slight upticks in food and health costs.
In May 2025, Colombia’s annual inflation rate decreased to 5.05%, which is a dip from April’s 5.16% and falls just shy of market forecasts estimating it at 5.1%. This is significant as it represents the lowest level recorded since October 2021, indicating that the country has made strides in controlling inflation.
The decline can be attributed mainly to softer inflation in major sectors. For instance, transportation experienced a slight decrease, registering 5.26% compared to 5.29% the previous month. Housing saw a reduction from 6.09% to 5.82%, while the restaurant and hotel industry slipped from 7.71% to 7.41%. Education costs also eased slightly, from 7.38% to 7.35%.
However, not all categories shared this downward trend. Inflation for food increased slightly to 4.71%, up from 4.61%, while health costs ticked up as well, registering 5.34%, a slight rise from 5.31%. Despite these increases, the overall trend indicates improvement in many sectors of the economy.
On a monthly basis, the consumer price index saw a 0.32% rise, which is below the forecasted increase of 0.5%. This marks the smallest monthly increase observed since November, particularly following a steeper increase of 0.66% in April. The month-to-month data suggests continuing efforts to stabilize prices in the economy are taking shape, though challenges remain in specific categories.
Colombia’s inflation rate has hit its lowest point since 2021, demonstrating progress in managing economic pressures. Key spending categories have shown a decrease in inflation, although some areas like food and health are experiencing slight increases. Overall, the monthly rise in consumer prices has also slowed, indicating potential further stabilization. The economic outlook remains cautious yet hopeful as the market responds to these changes.
Original Source: www.tradingview.com
