Inflation in Colombia Jumped to 3.33% in October, the Highest Level Since February
The consumer price index (CPI) in Colombia rose by 0.12% last month, bringing the nation’s year-over-year inflation rate for October to 3.33%. This is the highest figure since February and up from the 3.23% annual rate seen in September, according to the National Administrative Department of Statistics (DANE).
Despite the jump, the rate remains largely in line with expectations set by the Colombian central bank, the Banco de la República, which has forecast the 2018 inflation rate to end the year at 3.28%.
“A slight increase in inflation due to supply factors is expected for the end of 2018 within a more dynamic economic growth environment than in the previous year and which would continue in 2019,” said the bank in a statement after leaving the nation’s benchmark interest rate unchanged, at 4.25%, last week.
During October, the cost of housing (up 0.36%) and transportation (0.20%) were the largest factors in the overall CPI increase. Healthcare (0.07%) and clothing (0.06%) also contributed to the uptick.
Food prices, an areas that has drawn increased attention since President Iván Duque submitted a tax bill that included a value-added tax on some basic foods, actually fell by 0.04% in October. This included price drops for tomatoes (-12.9%) and oranges (-5.7%). Onions (up 13.6%), potatoes (7.5%) and yuca (5.8%) all increased in price last month.
Price drops were also seen in October in the cost of communications (-0.05%) and entertainment (-0.08%), a category that has now fallen by 2.8% during the first 10 months of 2018.