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The central bank again expressed concern about economic weakness on top of low domestic demand and low external demand.

The 3.99% rate is 38 basis points below the 4.37% annual inflation seen in May and less than half of the 8.60% rate in June 2016.

With inflation nearing the central bank's target range, some analysts are now wondering if the central bank will make another 50-basis-point cut Colombia's interest rate.

The February rate is down from 5.47% in January — and a marked decrease from the 8.97% seen in July 2017.

Some of the funds will be devoted to improving fertilizer production, warehousing, and distribution in Colombia.

This marks the second straight month with no intervention, putting a definitive end to the prior 11 months of rate hikes.

A drop in inflation was expected — but "its magnitude was much greater than we anticipated," said Bancolombia. A sharp decline in food prices fueled the major rebound.

The Banco de la República had pushed the interest rate up by 325 basis points over the previous 11 months to curb out-of-control inflation.

“This strike, which lasted 45 days, has been very costly for everyone,” said Colombia President Juan Manuel Santos in announcing the deal reached with the truckers.

The highest inflation level since 2001 is "testing Colombia's commitment to preserving the credibility of its inflation targeting regime," says Fitch.