Free Trial

February Inflation Above Forecast, But Confirms Downtrend

COLOMBIA
  • Colombia's consumer prices rose slightly ahead of median surveyed estimates in February. CPI rose 1.09% m/m (est. +1.01%) versus +0.92% in January, taking the annual rate to 7.74% y/y (est. +7.68%) versus +8.35% in January. In similar vein, core CPI rose 9.2% y/y (est +9.10%) versus +9.69% in January. Excluding food and regulated prices, the rate dropped to 7.26% from 7.81%. The average of the three core inflation metrics monitored by the central bank fell to 8.17% from 8.73%.
  • While the data was higher-than-expected, figures confirmed improvements from the prior month and keep the door open for BanRep to accelerate the easing cycle on March 22. In reaction to the data, Finance Minister Ricardo Bonilla said that the central bank should cut borrowing costs at a “significant rate” after inflation slowed for 11 straight months. For reference he has previously voiced that cuts of 50, 75 and 100bps should all be discussed later this month.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.