Colombia’s inflation rate fell to 5.05% in May 2025, down from 5.16% in April, marking the lowest level since October 2021. Major sectors like transportation and housing contributed to this decline, while slight increases in food and health costs were noted. Monthly consumer prices rose 0.32%, the smallest since November.
Colombia’s annual inflation rate has eased down to 5.05% for May 2025, a decline from April’s rate of 5.16%. This is significant as it marks the lowest inflation rate since October 2021, and it came in just under the market’s expectations of 5.1%. This drop indicates that efforts to curb inflation are gradually paying off.
The decrease in inflation rates appears to stem mostly from reductions in vital sectors, including transportation, housing, restaurants, and education. For instance, transportation inflation was at 5.26%, a slight drop from 5.29%, while housing decreased to 5.82% from 6.09%. Restaurants and hotels also saw a dip to 7.41% compared to 7.71% in the previous month. Education inflation reduced to 7.35% from 7.38%.
However, it’s worth noting that some categories saw an uptick. Food prices rose to 4.71%, up from April’s 4.61%, and health costs edged higher to 5.34%, slightly up from 5.31%. This paints a mixed picture, suggesting that while certain areas are improving, others are still feeling the effects of price increases.
Analyzing month-to-month changes, consumer prices saw an increase of only 0.32% in May, which is quite a bit lower than the expected 0.5%. This 0.32% rise is also the smallest monthly increase noted since November 2024, following a higher 0.66% increase in April. This reflection of slower price growth adds to the positive optimism regarding Colombia’s inflation trajectory.
In summary, Colombia’s annual inflation rate has dipped to 5.05%, the lowest since late 2021, indicating successful measures to reduce price pressures in key sectors. While some areas like transportation and housing have seen decreases, increases in food and health costs remain a concern. The month-to-month increase in consumer prices is the smallest recorded since November, further supporting the view of easing inflation.
Original Source: www.tradingview.com
