Colombia’s inflation rate hit 5.28% in February, exceeding forecasts of 5.13%. Consumer prices rose 1.14% with major increases in education, transportation, and housing. The central bank maintained interest rates amid inflation concerns and updated forecasts now predict a 4.22% rate by 2025.
Colombia’s inflation rate reached 5.28% in February, exceeding analysts’ forecasts. According to the DANE statistics agency, the consumer price index increased by 1.14%, surpassing the anticipated 1% monthly rise and an annual target of 5.13%. This figure is slightly higher than the 5.22% recorded in January, indicating persistent inflation above the central bank’s long-term target of 3%.
The increase in February was driven primarily by rising education costs, attributed to the back-to-school season. Additionally, transportation and housing costs contributed to the overall inflation rise. In contrast, the information and communication sector experienced a decline in monthly costs during this period.
In light of inflation expectations, Colombia’s central bank opted to maintain its benchmark interest rate for the first time in over a year, diverging from market expectations for a further rate reduction. Analysts have also adjusted their predictions, now expecting inflation to close 2025 at 4.22%, an increase from their prior estimate of 4%.
A detailed breakdown of Colombia’s consumer prices reveals significant changes:
– February’s monthly increase: 1.14% compared to January’s 0.94%.
– Annual inflation increased to 5.28% from 5.22%.
– Food and non-alcoholic beverages saw a subtle rise of 0.60% versus 1.62% in January.
– Costs associated with housing and public services rose by 1.16%, up from 0.39%.
In summary, Colombia’s inflation rate has risen to 5.28% in February, showing an upward trend that remains above the central bank’s target. Factors such as increased education costs and housing expenses have significantly influenced this rise. The central bank’s decision to maintain interest rates indicates ongoing concerns about inflation, with forecasts for future inflation adjusting upwards.
Original Source: www.tradingview.com
