Colombia’s inflation rate for February surged to 5.28%, exceeding forecasts with a monthly rise of 1.14%. Key contributors were elevated education, transport, and housing costs. The central bank has maintained its benchmark interest rate amidst rising inflation expectations, which analysts now predict will hit 4.22% for 2025.
In February, Colombia’s 12-month inflation rate reached 5.28%, as reported by the DANE statistics agency, surpassing analysts’ forecasts. The consumer price index experienced a monthly rise of 1.14%, exceeding expectations of a 1% increase and an annual projection of 5.13%. This slight increase in annual inflation from January’s 5.22% remains above the central bank’s long-term target of 3%.
The latest data shows that, compared to January’s inflation rate of 0.94%, price increases in February were largely driven by rising education costs linked to the back-to-school period, along with increased expenses in transport and housing. The information and communication sector was the solitary area that showed a decline in monthly costs.
In light of inflation projections, Colombia’s central bank opted to maintain its benchmark interest rate in January after an extended period of adjustments, despite market expectations for a rate reduction. Analysts have adjusted their inflation forecasts, now anticipating an annual figure of 4.22% for 2025, increased from a prior prediction of 4%.
The following provides a summary of consumer prices in Colombia for February:
– Change in the month: +1.14% (January: +0.94%)
– Accumulated 12 months: +5.28% (January: +5.22%)
– Food and non-alcoholic beverages: +0.60% (January: +1.62%)
– Housing and public services: +1.16% (January: +0.39%)
In conclusion, Colombia’s inflation rate in February reached 5.28%, surpassing expectations. The increase, driven primarily by educational costs, indicates ongoing inflationary pressures above the central bank’s target. Analysts have revised their future inflation predictions upward, reflecting growing concern over persistent price rises in various sectors, despite the central bank’s recent policy decisions.
Original Source: www.tradingview.com
