Shafaqna English– Colombia’s August inflation report delivered an upside surprise on Monday, with the DANE statistics agency reporting a 0.39% monthly increase in consumer prices that lifted the annual rate to 6.24%.
The reading exceeded the 0.26% consensus forecast from Reuters-polled economists and the 0.17% monthly advance seen in July, while the annual figure moved up from 6.03% to edge past the 6.10% projection.
The central bank’s 3% target, with a one-percentage-point tolerance on either side, remains far out of reach as inflation continues to run at more than double the midpoint.
The monthly price increases were led by recreation and culture, information and communication, and food and non-alcoholic beverages, while clothing and footwear prices declined slightly and education and transport posted the smallest gains.
On the fiscal front, Colombia is facing growing headwinds as revenues shrink and expenditures rise, putting pressure on the new administration of right-wing President Abelardo De La Espriella, who took office just last month and is now attempting to cobble together a coalition from a divided right-wing political spectrum in order to secure a congressional majority against the leftist Historic Pact bloc, which holds the largest share of seats in the legislature.
Source: Reuters