Colombia | In February, inflation fell to 7.7%

Summary

In February, annual inflation continued to decrease, registering an annual variation of 7.7% and a monthly variation of 1.09%. The result was above the expectations of market analysts, who expected a monthly variation of 0.96%.

Key points

• Key points:
• Food inflation continued to decline, reaching 1.9% in February's annual variation, reaching the lowest level since December 2018. This reduction was favored by decreases in the three sub-baskets that make up food: processed (annual variation of 4.8%), meats decreased (annual variation of 3.1%) and perishables (annual variation of -3.4%).
• Non-food inflation decreased, reaching an annual variation of 9.2%. The main reduction came from the basket of goods, whose decreases continue to be favored by statistical effects of comparison against high levels in 2023.
• The second basket that decreased the most within core inflation was that of administered prices, at 16.0%. This still exhibits pressures from subclasses such as fuels, electricity and urban transportation.
• The services basket registered an annual variation of 8.5% in February. This basket continues to be under upward pressure from subclasses such as rents, meals away from home and table service, and services related to co-ownership.
• With the above, BBVA expects inflation to maintain its downward trend, but with pressures from indexation factors that are reflected in slower moderations from the services and regulated baskets. With this, total inflation will close 2024 at 5.4% and 2025 at 3.8%.

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