Colombia | September inflation eases slightly to 2.9%

Inflation in September stood at 0.14% y/y (2.86% m / m) in line with what we expected (BBVAe: 0.14%, analysts: 0.26%). By components, the housing group led the growth with a variation of 0.15% m/m followed by Education and Food with growth of 0.17% and 0.16% m/m, respectively. The price of energy continues to drive the housing inflation and in September grew 0.5% m/m, accumulating a growth of 8.1% in 2014. The core inflation indicators remain stable growing at a rate (average) of 2.55% y/y, slightly below August’s 2.61% rise. Given that core inflation remains below target (3%) and that GDP would average annual growth of 4.4% over 2H14, we believe the central bank will keep on hold its benchmark interest rate at 4,5% October, and through the end of the year.

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