Inflation continues unabated in Colombia where the Consumer Price Index (CPI) was 1.63% in Februaryas reported this Saturday by the director of the National Administrative Department of Statistics (DANE), Juan Daniel Oviedo.
(Annual inflation in Colombia was above 8%).
The data widely exceeds that of February 2021, which stood at 0.64%, while the annualized inflation reached 8.01%, significantly higher than the 1.56% of the previous period. Similarly, the CPI for the first two months of the year stood at 3.33%, while in the same period of 2021 it was 1.05%.
When detailing the figures, Oviedo said that the sectors that contributed the most to the increase in the annual CPI were food and non-alcoholic beverages with a contribution of 3.72 punt percentage. It was followed by accommodation, water, electricity, gas and other fuels (1.47), restaurants and hotels (1.20) and transportation (0.96).
The director of DANE added that in the food sector, the components that have been most driving the rise in the CPI are potatoes, fruits, milk, bananas and rice.
MEASURES TO CONTROL INFLATION
To deal with inflation, the Colombian government authorized last Thursday reduce to zero for six months the tariffs of 165 products that the country imports and that have a high impact on the cost of the basic basket. “These goods had tariffs of 5%, 10% and, in some cases, 15%,” explained the Ministry of Commerce, according to which these imported products do not have a national production record.
Among the subheadings that will have this new tariff treatment are food, beverages, flourscereals, seeds for agricultural products and essential oils. Also different types of paper, malt extract, protein hydrolysates, yeast autolysatesbread improvers, food supplements, worked oat grains, toilet paper, handkerchiefs and paper towels, and some tools.
On the other hand, given the constant rises in inflation, the Bank of the Republic A period of interest rate hikes began last September to prevent the CPI from drifting too far from the 3% inflation target. In its most recent meeting, on January 28, the issuer raised the interest rate by 100 basis points, which was set at 4.00%.
Local analysts consider that the IPC will continue to rise in Colombia in the first six months of this year, for which they take it for granted that the Banco de la República will raise interest rates again at its meeting this month.