Colombia’s 12-month inflation rate hit 5.28% in February, surpassing predictions of 5.13%. Monthly prices rose by 1.14%, driven by education and housing costs, with the central bank maintaining interest rates amid revised inflation forecasts for 2025.
In February, Colombia’s consumer price index reported a rise of 1.14%, resulting in a 12-month inflation rate of 5.28%. This figure exceeded analyst forecasts from a Reuters poll, which had anticipated a monthly increase of 1% and an annual inflation rate of 5.13%. The annual inflation rate saw a slight increase from January’s 5.22%, significantly surpassing the central bank’s long-term target of 3%.
The inflation rate in February was predominantly driven by increases in education costs following the back-to-school season, along with rises in transportation and housing expenses. Notably, the information and communication sector was the sole industry to experience a decline in monthly costs. Reuters analysts have revised their inflation forecasts upward, projecting a year-end rate of 4.22% for 2025, compared to the previous estimate of 4%.
The following is a summary of Colombia’s consumer prices for February: a monthly change of +1.14%, compared to January’s +0.94%, with an accumulated 12-month inflation rate of +5.28%, up from +5.22% in January. Specific categories included food and non-alcoholic beverages, at +0.60% for February and +1.62% for January, while housing and public services saw a rise from +0.39% in January to +1.16% in February.
In light of inflation expectations, Colombia’s central bank maintained its benchmark interest rate in January after a series of cuts over the previous year, although the market had anticipated another reduction.
In summary, Colombia’s inflation rate reached 5.28% in February, surpassing forecasts and continuing to exceed the central bank’s target of 3%. Monthly increases were particularly driven by education, transportation, and housing costs. Forecasts for inflation are now adjusted upward, with expectations for a gradual decline by 2025.
Original Source: www.tradingview.com
