Colombia inflation rate seen rising again in January
Reuters
Published Feb 01, 2023 11:37AM ET
Updated Feb 01, 2023 11:47AM ET
By Nelson Bocanegra
BOGOTA (Reuters) - Colombia's inflation is forecast to have increased again in January, pushed up by wage growth and higher food and gasoline prices, a Reuters poll showed on Wednesday, with analysts forecasting consumer price growth had further to run.
According to the median taken from 23 analysts' forecasts, monthly inflation is expected to have risen to 1.65% in January, up from 1.26% in December and close to the 1.67% seen in January 2022.
The estimates ranged from 0.3% to 2.20%.
The government's DANE statistics agency will publish inflation data on Saturday, Feb. 4.
If the median forecast is correct, annual inflation in January will have risen 13.10%, more than four times greater than the central bank's 3% target.
Colombia's 12-month inflation in December was 13.12%.
The growth could be explained in part due to the affect of a 16% rise in the minimum wage on the cost of goods and services, as well as higher gasoline prices pushing up transport costs and higher inflation in the food sector, the analysts said.
Inflation will continue to rise in the first quarter before beginning a moderate descent, the analysts said.
"The January number might not be the peak, on the optimistic side we will reach between 13.5% and 14% before seeing a decline," said Munir Jalil, chief economist for the Andean region at bank BTG Pactual.
Analysts now expect the annual inflation rate to hit 8.75% by the end of the year, up from the 7.56% in December's survey, and project the metric could stand at 5% in 2024, up from previous forecasts of 4.01%. The 12-month inflation rate is only seen returning to the central bank's target in 2025.
Rampant inflation has led the central bank to hike its benchmark interest rate by 1,100 basis points to its current level of 12.75%.
Central Bank board members and most analysts expect monetary tightening to be close to its end.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.