Economy & Business - April 2023

COLOMBIA | Rate hikes fail to curb inflation. Colombia’s national statistics department (Dane) released the latest consumer price index on 5 April, which put monthly inflation in March at 1.05%, down from 1.66% in February. This brought annual inflation to 13.34%, which was up from 13.28% in February. Inflation in March was predominantly driven by monthly price increases for housing, water, electricity, gas and other fuels (+1.01%), goods & services (+1.62%), and household goods (+1.47%). This was the tenth consecutive month in which annual inflation was over 10%, and it now stands at its highest level since March 1999. The latest increase followed the central bank’s decision on 30 March to raise the benchmark interest rate by 25 basis points to 13%. In a statement announcing that decision, the central bank highlighted signs that “the inflation rate is approaching its ceiling”, citing a decline in annual food inflation between December and February and more positive forecasts from economic analysts. It emphasised that monetary policy decisions will continue to be focussed on bringing inflation toward the 3.0% target.

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