Colombia | In June, annual inflation reached 9.67%, the highest in 22 years

In June, monthly inflation was 0.51% and 9.67% year-on-year, in line with market analysts' and BBVA Research's expectations. Core inflation (excluding food) stood at 6.84% in annual change, accelerating 34 bps from the previous month's result.

Key points

• Key points:
• Food inflation did not lose its prominence in June with annual inflation reaching 23.6%, driven by a monthly change of 0.65%, well above the historical average. Alongside this, the restaurants and hotels division recorded significant pressures due to high food prices as an input for its services.
• The clothing and footwear and information and communication divisions outstanded with negative contributions of -2.64% and -0.24 respectively, due to the good results of the VAT-free day that led to these variations.
• Administered goods and services showed an acceleration of 110 basis points in the annual change, reaching an inflation of 10.3% compared to the same month of the previous year and reflecting a high contribution from divisions such as shelter and public services.
• We expect inflation to remain at elevated levels in the coming months with some very gradual moderation in food but with upward adjustments in core inflation.

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