Colombian Inflation Rate Remains Nearly Unchanged for Third Straight Month After Slight Uptick to 3.16% in May

The annual inflation rate in Colombia rose slightly in May to 3.16%, according to government figures released today. While this is still well within the central bank’s target rate of between 2%-4%, it represents a minor uptick from the 3.13% recorded in April in year-over-year terms.

The rate in March was roughly the same at 3.14%, however, marking the third straight month of negligible change to the annual rate following a drop from 3.37% in February.

Overall, the consumer price index rose by 0.25% during the month, according to the National Administrative Department of Statistics (DANE).

One of the key reasons that inflation has stayed so relatively low in recent months is the stability of food prices. Looking at the 12 months from June of the prior year through the end of May, the 12-month cost increase of just 1.5% this year was the lowest since 2013.

By contrast, food prices rose by 13.5% over the same time period ending in May 2016 and by 6.2% in May 2015, according to DANE figures.

In addition to food prices rising by just 0.06% over the past month, clothing costs actually decreased by 0.03% from April to May, and communications fell by 0.01%. Education costs were also flat, while healthcare prices only rose by 0.07%.

The biggest economic segment increases in May came from entertainment (up 0.65%), housing (0.45%), and transportation (0.38%).