In a Reuters poll, the market expected inflation of 0.60% for the seventh month of the year.
The figure was higher than the rise of 0.32% in July last year and 0.51% in June.
Main increments of prices in July they were given in the category of clothing and footwear with 3.60%, followed by the food and non-alcoholic beverages with 1.17%, the transportation with 0.96%, the Health with 0.88% and in the restaurant and hotel activities with 0.83%.
Between January and July, inflation reached 7.96%, compared to 3.47% in the same period of 2021.
In the accumulated of the last 12 months up to July, inflation in Colombia stood at 10.21%, compared to 3.97% in the same period of the previous year and more than three times the Central Bank’s long-term target of 3%.
“We are seeing a setback of more than 22 years around annual inflation,” DANE director Juan Daniel Oviedo said in a presentation.
Colombia moves away from its goals
“Today this result is leading us to have a sure increase in inflation expectations at the end of this year“, he added.
At the beginning of the week, the technical team of the Central Bank of Colombia raised its inflation forecast for this year to 9.7% from a previous 7.1%, amid persistent pressures derived from local and international factors, that led the monetary authority last month to raise its interest rate at 9%.
In addition, the agency increased its inflation projection for 2023 to 5.7% from a previous 4.8%.
The technical team of the issuing bank showed that it has a more bullish bias on the reference interest rate than the market projections.
The Central Bank of Colombia has accumulated an increase of 725 basis points in its interest rate since the upward cycle began in September of last year.
Source: Ambito
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