Reasons for rising inflation in Colombia

Inflation in Colombia continued to pick up in January, helped by rising wages and higher food and gasoline prices, a Reuters poll showed on Feb. 1, FX Empire reports.

Analysts predict that consumer price growth will continue.

Based on an average of 23 analysts’ forecasts, monthly inflation is expected to rise to 1.65% in January from 1.26% in December and close to 1.67% in January 2023. Estimates ranged from 0.3% to 2.20%.

If the median forecast is correct, annual inflation will rise by 13.10% in January, more than four times the central bank’s target of 3%. 12-month inflation in Colombia in December was 13.12%.

Analysts say the increase can be attributed in part to the impact of a 16% increase in the minimum wage on the cost of goods and services, as well as higher gas prices pushing up transportation costs and higher inflation in the food sector.

Analysts say inflation will continue to pick up in the first quarter before starting a moderate decline.

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