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Headline CPI Beats Expectations, Rises to 3.97% Y/y

COLOMBIA
  • Adding to the more hawkish stance of the central bank at last week's meeting, CPI data for July surprised to the upside. The monthly reading printed 0.32% vs 0.12 estimate with the annual headline print reaching 3.97% vs. a 3.76% estimate and a prior reading of 3.63%. Additionally, the core reading rose to 2.86% y/y.
  • Key statement from BanRep Governor Villar to lawmakers yesterday:
    • "Although we have prospects of maintaining very expansionary monetary policy in the future, this monetary policy in its magnitude cannot be as expansionary as it has been and we have to start thinking soon about gradual upward adjustments in the interest rate".

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