Colombia

Consumer Prices August 2002

The Numbers in Detail

The Departamento Administrativo Nacional de Estadística (DANE) reports that:

The monthly variation in the Consumer Price Index (CPI) was at 0.09% in August, which was below the rate registered in August last year (0.26%).  In historical terms, the rate can be situated among the lowest for a month in the last ten years.

The August 2002 variation can be explained principally by the following groups:  housing, transport, food and various expenses.

Between January and August of 2002 the accumulated variation reached 4.92%, below the 6.57% registered in August 2001.
 

LatinFocus Comment

The August figure was the second lowest monthly increase observed this year and brought down the annual inflation rate from 6.15% in July  to 5.97% in August.  At its current level, annual inflation is just below the Central Bank’s 6% target for this year.  The persistence of low inflation reflects subdued economic activity and may enable the Central Bank to further lower interest rates this year.

Forecasts: This indicator is covered in the LatinFocus Consensus Forecast.  For 5-year projections, including quarterly forecasts for the next two years, please click here