Despite February's drop, inflation is unconvincing and experts say upward risks persist this year
The cost of living in February was below expectations. Photo: Image generated with artificial intelligence.
TL;DR
- Colombia's annual inflation rate fell to 5.29% in February, below market expectations.
- The moderation was largely due to regulated prices, not a widespread reduction in inflationary pressures.
- Services inflation rose to 6.45%, driven by labor-intensive sectors like dining out and education.
- Inflation excluding food and regulated items (core inflation) increased to 5.52%.
- Food inflation reached 5.84%, with perishable products seeing an 8.49% annual increase, partly due to weather impacts on agriculture.
- Year-to-date inflation (January-February) at 2.27% is higher than the same period in the previous year.
- Colombia's disinflation process is slower compared to other Latin American countries.
- Key factors to watch include core inflation, services prices, and the impact of the minimum wage increase.
- Risks of upward price pressures persist, potentially slowing down the convergence to the central bank's target.