Colombia | Inflation stood at 0,15% m/m in July and demand pressures ease

In line with what we expected, inflation in July recorded a variation of 0.15% MoM (2.89% YoY), beating market expectations (BBVAe: 0.16%, consensus: 0.09 %). With this record, the accumulated inflation from the start of the year stood at 2.73%. On the other hand, core, tradable and nontradable inflation continued to show a slowdown in growth (monthly and yearly) in July. This slowdown in the pace of prices is consistent with lower activity growth that we expect in the second half of 2014, and it also strengthens our forecast of a pause in the policy rate hiking that would initiate the central bank after rising 25 basic points their intervention rate at the end of this month.

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