Colombia’s inflation rate reached 5.28% in February 2023, fueled by increased costs in education, transport, and housing, surpassing analyst expectations of 5.13%. The central bank maintained interest rates amid rising projections for future inflation to 4.22% for 2025.
In February 2023, Colombia recorded a 12-month inflation rate of 5.28%, exceeding analyst forecasts. According to DANE, the consumer price index increased by 1.14% for the month, surpassing the anticipated 1% rise and annual inflation forecast of 5.13%. This slight uptick from January’s rate of 5.22% remains above the central bank’s target inflation rate of 3%.
The February inflation data reflected a notable acceleration from January’s monthly increase of 0.94%. Analysts revising their estimates now predict the inflation rate will end 2025 at 4.22%, an increase from their previous estimate of 4%. Key contributors to February’s inflation included rising education costs linked to the back-to-school season, alongside increases in transport and housing costs.
Among the sectors monitored, the information and communication sector was the sole category to report a monthly decline in costs. In response to inflation trends, Colombia’s central bank opted to maintain its benchmark interest rate steady for the first time in over a year, contrary to market expectations for a further reduction.
For February, consumer price changes were as follows:
– January inflation: +0.94%
– February inflation: +1.14%
– 12-month inflation: +5.28% during February vs +5.22% in January
– Food and non-alcoholic beverages: +0.60% in February compared to +1.62% in January
– Housing and public services: +1.16% in February vs +0.39% in January.
February’s inflation in Colombia exceeded analyst expectations, with key price increases in education, transport, and housing. The central bank’s decision to hold interest rates reflects ongoing inflation concerns. Analysts have revised predictions upwards for future inflation, suggesting a sustained pressure on consumer prices.
Original Source: www.tradingview.com
