Colombia’s Inflation Rate Reaches 5.28% in February, Exceeding…

Colombia’s 12-month inflation rate reached 5.28% in February, exceeding forecasts. February’s consumer price index rose 1.14%, driven by rising costs in education, transportation, and housing. Analysts have revised their predictions for inflation to 4.22% for 2025. The central bank has maintained its interest rate amidst these rising inflation concerns.

In February, Colombia’s consumer price index increased by 1.14%, resulting in a 12-month inflation rate of 5.28%, according to the DANE statistics agency. This figure exceeded analysts’ expectations, who forecasted a monthly increase of 1% and an annual inflation rate of 5.13%. The annual rate rose slightly from January’s 5.22%, remaining above the central bank’s target of 3%.
The recent inflation data revealed further upward pressure, as analysts raised their predictions for inflation to a closing rate of 4.22% by the end of 2025, up from a previous estimate of 4%. The increase in February was primarily driven by higher education costs following the back-to-school season, along with increases in transportation and housing. Meanwhile, the information and communication sector reported a monthly decline in costs.
Due to inflation concerns, Colombia’s central bank maintained its benchmark interest rate in January for the first time in over a year, despite market expectations for a rate cut. Below is a summary of Colombia’s consumer prices for February, compared to January:
– Change in month: February +1.14%, January +0.94%
– Accumulated inflation over 12 months: February +5.28%, January +5.22%
– Food and non-alcoholic beverages: February +0.60%, January +1.62%
– Housing and public services: February +1.16%, January +0.39%.

The inflation data for February highlights a concerning trend for Colombia’s economy, with the 12-month rate reaching 5.28%, beyond forecasted figures. This increase reflects significant pressures in key sectors such as education, transportation, and housing. As the central bank weighs its policies amid these inflationary trends, economists anticipate a revised outlook for inflation rates moving into 2025.

Original Source: www.tradingview.com