In its most recent monetary policy meeting, the Banco de la República moderated the increase in interest rates for the month of February, while it awaits the results of the Dane de la inflation in Colombia at the January cutoff, which will be known this Saturday to establish whether prices continued to rise, remain the same, or fell.
(This would be household consumption for this 2023 with high inflation).
Since last year, upward inflationary pressures have been constant, which is why the Banco de la República has had to raise interest rates in order to curb high prices.
This has led to household consumption habits also changing in order to ‘get rid of’ the high cost of living.
A Kantar Worldpanel study indicates that families are spending more than 20% on supermarket own brands because they find it cheaper.
(Families are spending 20% more on supermarket own brands.)
“With high inflation, households must pay more for less volume. This is how own brands play an important role and position themselves as a great ally of Colombian households in this scenario where price is a determining factor when making purchasing decisions.” affirmed María José Cruz, Associate Manager Client Management of this firm.
And it is to adapt to price changes is one of the biggest challenges for families.
Precisely one of the concerns of households has to do with when inflation will begin to subside and if with this the costs of products and services in commerce will also fall, since once they are high it is difficult for them to return to post-pandemic prices.
In an interview with Portfolio Marc Hofstetter, a professor at the Universidad de los Andes and an expert in monetary policy, said that once inflation subsides, there will be falls in prices.
(Rise in interest rates, will consumption dynamics change?).
“Obviously when the level of increases is high, like the one we have now, it is less likely to see falls in the prices of goods and services. What we see is that some grow less, but grow. However, as inflation subsides, it will become more and more frequent that not only the increase is less, but also that they fall definitively. noted the expert.
The annual variation of inflation for 2022 was 13.12%. How will the year start? This Saturday it will be known.
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