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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.