Inflation in Colombia reached 5.41% in its annual variation in October. This result keeps the Consumer Price Index (CPI) on the downward path that it has been registering in recent months, bringing it closer to the goal of the market and the Government that aims to close the year with it at 5%.
(Read more: Inflation in Colombia closed October at 5.41%, in its annual variation)
In this regard, the Minister of Finance, Ricardo Bonilla, has highlighted that this data confirms that “controlling” the behavior of inflation.
“What the Dane has just delivered is confirmation that we are effectively controlling inflation and that we can end the year with a CPI of 5%”highlighted the official in his speech at the annual Camacol congress. Minister Bonilla also emphasized that, with this report, The data already completes 19 consecutive months of decline.
For her part, the president of the Colombian American Chamber (AmCham Colombia), María Claudia Lacouture, stressed that although the trend that the CPI has adopted is a positive indicator for the economy, “To boost the country’s growth and reduce social gaps, it is necessary to implement forceful actions that accelerate economic reactivation.”
Among the actions that could contribute to the fulfillment of this objective, the union leader included a greater reduction in the interest rate, public-private alliances in job-generating sectors and the issuance of messages that strengthen the confidence of businessmen and investors.
Inflation
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Jackeline Piraján, economist at Scotiabank Colpatria, indicated that a lower inflation base could allow for different minimum wage negotiations.
“In recent years, there have been double-digit minimum wage adjustments, partially responding to the needs to cover those expenses that had deteriorated due to the increase in inflation. Today inflation is going down and that is very good news, “but it should also imply that the basis for negotiating the minimum wage has to be more moderate, because we are starting from lower negotiation bases, thanks to this decline in inflation,” the expert highlighted.
Piraján also mentioned that with this behavior of the CPI, the Bank of the Republic has elements to continue reducing its interest rate.
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