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Inflation Recap: Close To Expectations, Opens Door For Larger Cuts Ahead

COLOMBIA
  • Headline and Core inflation for January registered close to expectations overnight, confirming the downward trajectory for both metrics and potentially opening the potential for the central bank to up the pace of easing at its March 22 meeting, subject to any negative surprises in coming weeks.
  • Analysts noted the headline print was mostly driven by services and regulated items, due to a combination of seasonal urban transport tariff resetting, the removal of fuel subsidies, and pressures on the electricity sector.
  • The data rundown was as follows:
    • Jan. Consumer prices rose 0.92% m/m (est. +0.95%) in January versus +0.45% in Dec.
    • Jan. Consumer prices rose 8.35% y/y (est. +8.37%) vs +9.28% in Dec.
    • Jan. Core consumer prices rose 1.02% m/m (est. +1.00%) vs +0.66% in Dec.
    • Jan. Core consumer prices rose 9.69% y/y (est. +9.68%) vs +10.33% in Dec.

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