Colombia’s Inflation Rate Hits Lowest Level Since 2021

Colombia’s annual inflation rate has dropped to 5.05% in May 2025, the lowest level since October 2021. This reduction reflects easing costs in key categories like transportation and housing. Monthly consumer prices rose 0.32%, below the expected increase, indicating a slowdown in inflation rates.

Colombia has reported a notable easing in its annual inflation rate, which has dipped to 5.05% for May 2025. This figure represents a decrease from April’s rate of 5.16% and falls slightly below market expectations of 5.1%. Analysts consider this development significant as it is the lowest inflation rate observed since October 2021, indicating steady progress in the country’s efforts to manage rising prices.

The decline in inflation can be attributed to reductions in several critical categories. Transportation costs increased only by 5.26%, down from 5.29% in April. Similarly, housing inflation fell from 6.09% to 5.82%, while restaurants and hotels experienced a decrease from 7.71% to 7.41%. Education also saw a slight change, where the inflation rate went from 7.38% to 7.35%.

However, not all categories are seeing the same downward trend. Food prices have risen modestly, with an increase from 4.61% to 4.71%. Health-related costs have also edged up slightly, from 5.31% to 5.34%. These increases show that while overall inflation is decreasing, some areas remain under pressure.

On a monthly basis, consumer prices witnessed a rise of 0.32%. This figure was lower than the anticipated increase of 0.5% and marks the smallest monthly growth rate since November. A comparison shows that there was a 0.66% rise in prices in April, demonstrating a clear slowing down of inflationary pressures.

In summary, Colombia’s inflation rate is at its lowest since late 2021, now at 5.05% for May 2025. The drop is mainly due to easing prices in transportation, housing, restaurants, hotels, and education, despite some increases in food and health costs. There is a noticeable slowdown in monthly price growth, illustrating the efforts to stabilize inflation. This trend may provide some relief for Colombian consumers, although ongoing monitoring will be essential as some sectors still face inflationary pressures.

Original Source: www.tradingview.com