Colombia | Annual inflation resumes its upward trend in August and reaches 6.24%

Summary

Annual inflation resumed its upward trend in August and stood at 6.24%, 21 bps above July and 114 bps above the level observed at the end of last year.

Key points

• Key points:
• The acceleration relative to July was explained by both food and the non-food basket.
• In food, the increase was mainly driven by perishables, particularly potatoes and, to a lesser extent, vegetables, dried pulses, and tomatoes.
• Inflation excluding food completed six consecutive months of increases, driven by services and regulated items. In services, the main pressures came from communication and television services, rents, package holidays, and air transport. In regulated items, the increase in electricity tariffs stood out.
• Risks to inflation remain elevated, both in food and regulated items. The El Niño phenomenon could generate renewed pressures on food prices and electricity and gas tariffs.
• We expect inflation to continue its upward trend in the coming months and close 2026 at 7.0%, in a context marked by the potential lingering effects of the earthquake, the materialization of the effects of the El Niño phenomenon, strong domestic demand, and risks stemming from the conflict in the Middle East.

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