Colombia |Annual inflation in May falls to 9.07%, but still far from victory

Summary

In May, monthly inflation was 0.84% and annual inflation was 9.07%, close to the expectations of market analysts and BBVA Research (0.80% monthly change).

Key points

• Key points:
• Although annual inflation declined from the previous month, monthly inflation was more than twice the pre-pandemic average, so that the rise in the price level continues to be outstanding.
• Food inflation reached 21.6 per cent in annual variation, down from April's result. Although the monthly figure in this division was lower than those seen in the first months of the year, monthly food inflation was five times its pre-pandemic average.
• The two divisions that contributed the most to the final result after food, were shelter & utilities and restaurants & hotels, with annual changes of 5.4% and 14.7% respectively.
• Inflationary pressures are expected to continue via food production costs, while core inflation will still have lagged effects from the high exchange rate in recent months, as well as cost impacts from imported goods due to remaining international bottlenecks.

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