Colombia's Inflation Forecast to Decelerate This Year Despite Truckers' Strike
Colombia: Colombia's 12-month inflation is projected to continue its decline in September, with analysts forecasting a rate of 5.83%, down from 6.12% in August, according to a Reuters poll. Consumer prices are expected to rise by 0.26% this month, consistent with last year's 0.25%, but higher than 0% registered in august. The recent four-day truckers' strike, which disrupted food and fuel supplies, had a temporary impact on prices but is expected to diminish quickly.
The central bank has responded to the inflation slowdown by reducing interest rates by 275 basis points since December 2023, including a 50-basis point cut to 10.25%. Current expectations indicate that inflation will close the year at 5.6%, with projections for 2025 adjusted to 3.70%. “The education sector is reactivated by the school calendar, while we expect to see moderate inflation in the rest of the sectors.” stated Jackeline Pirajan, Scotiabank's chief economist for Colombia.
Source: Reuters