Colombia | December inflation remained unchanged, leading to a 2024 closing at 5.2%

Summary

Inflation closed the year with an annual variation of 5.20%, remaining unchanged compared to the figure recorded in November. The monthly variation was 0.46%, above the expectations of market analysts, who according to the Banco de la República survey expected a monthly variation of 0.41%.

Key points

• Key points:
• Food inflation contributed largely to the fact that the total figure did not continue to decline, as it registered an increase in annual terms of 97 bps. Annual non-food inflation declined, but failed to offset increases in non-food inflation.
• Annual inflation of the services basket registered its largest downward adjustment since January 2024 (-31 bps) reaching an annual variation of 6.97%.
• The second sub-basket that contributed the most to the reduction was that of administered prices, which reached 7.31% in its annual variation, down 28 bps compared to the previous figure.
• The goods sub-basket, on the other hand, did not register changes, remaining at an annual variation of 0.62%, the lowest level among its peers.
• In the aggregate, BBVA Research expects inflation to continue moderating in 2025, although the pace may slow down due to some latent risks.

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