Colombia | Annual inflation remains stable for the second month in a row in June, at 7.2%

Published on Tuesday, July 9, 2024

Colombia | Annual inflation remains stable for the second month in a row in June, at 7.2%

In June, monthly inflation was 0.32%, and annual inflation was 7.18%, slightly higher than the previous month's figure. The result was close to the expectations of market analysts who, according to Banco de la República's survey, expected a monthly variation of 0.28%.

Key points

  • Key points:
  • Food inflation continues to rise, reaching an annual change of 5.3%. The result is largely explained by base effects of comparison against the same month of 2023 and by pressures in some specific foods, such as onions, potatoes and chocolate.
  • Non-food inflation moderated its decline, standing at an annual change of 7.6%. Within this basket, administered prices inflation was the one that fell the most, favoured by base effects, but remaining above the pre-pandemic average monthly figure. It is worth noting that this is the basket with the highest inflation among its peers, with an annual change of 13.3% for June.
  • The basket of goods recorded the second largest downward adjustment in the June data, with an annual change of 1.4%. The reduction was again favoured by base effects, and also by a monthly change that was close to its historical average.
  • Services, on the other hand, continued to exhibit some persistence, with slight declines for the second consecutive month and reaching an annual change of 7.9%.
  • At BBVA Research we expect inflation to resume its decline from next month and to continue moderating in the remainder of the year. This decline will continue to be supported by base effects, as well as moderate demand. As a result, inflation is expected to close the year at 5.4%.

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