FREELAND: CANADA WON'T ESCALATE OR BACK DOWN ON US TRADE FIGHT

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK T-Bill Calendar: 8/13/28/50-Week BTF Auction on Monday

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Scotiabank: Balance Of Inflation Risks Clearly To The Upside

COLOMBIA
  • Inflation data was well above the median forecast in BanRep’s survey (0.91% m/m), and Scotiabank Economics’ projection (1.11% m/m). Food prices again posted the biggest increases with all items posting positive m/m contribution. January’s CPI result brings annual headline inflation to 6.94% y/y, above the ceiling of BanRep’s target range (2%–4%) for the sixth month in a row.
  • Core inflation also increased from 3.44% y/y to 4.47% y/y, while ex-food and regulated goods inflation came in at 3.47% y/y (up from the 2.49 % in the previous month). January’s inflation reflects a new significant shock to food prices due to higher input costs, but also the effects of indexation on core components.
  • Scotiabank continue to expect a 100bps rate hike in March’s monetary policy meeting and that headline inflation will start to moderate in H2-2022. Having said that, since the balance of risks is clearly to the upside for both headline and core inflations, if CPI does not begin to converge on target in Q2-2022, Scotia would revise their forecast with a higher-than-expected terminal rate, which they currently estimate at 5.75%.
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

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.