Colombia | Headline annual inflation started 2022 at 6.94%

Inflation started the year with an upward surprise with a monthly print of 1.67% for January and annual change of 6.94% above market expectations. Monthly core prices increased by 1.21%, with an annual variation of 4.47%, also showing a surprise against analysts' expectations.

Key points

• Key points:
• Food inflation increased by 3.79% in January, registering the second highest variation in at least the last decade, with pressures from inputs, and lags from the winter wave at the end of last year.
• Tradable goods also showed considerable increases in the annual variation.
• There are still effects of the normalization in the measurement of VAT-free days, which was reflected in divisions such as clothing.
• The high inflation in January is a demanding starting point for the evolution of inflation in the coming months and in 2022 in general.

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