Colombia | Annual inflation surprised on the upside in April, reaching 5.2%

Summary

Annual inflation in April surprises on the upside (5.2%), driven by regulated items and goods. Core inflation (excluding food) also increases. Doubts persist regarding the speed of future moderation. This result may lead to upward revisions of forecasts and uncertainty about the future monetary policy stance.

Key points

• Key points:
• Inflationary increase led by significant rises in public utilities and transportation services.
• Goods continue on an upward trend from low levels, showing pressures from the exchange rate and demand.
• Services maintain annual stability, with rents moderating but offset by leisure activities and out-of-home food consumption.
• Food inflation shows a slight annual decrease, with opposing dynamics between perishables and processed foods/meats.
• The April inflationary rebound could influence expectations and future decisions of the Banco de la República (Central Bank).

Geographies

Topics

Tags