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Colombia: Inflation drops to near four-year low in June
Latest reading: Inflation edged down to 4.8% in June from 5.1% in May, marking the lowest inflation rate since October 2021. Although the reading fell short of market expectations, it remained above the Central Bank’s 2.0–4.0% target—where it has been since July 2021. The moderation was primarily due to slower growth in prices for food plus housing and utilities. Meanwhile, transport prices were largely unchanged in June.
As a result, the trend pointed down slightly, with annual average inflation coming in at 5.4% in June (May: 5.6%).
Finally, consumer prices increased 0.11% over the previous month in June, below May’s 0.32% increase. June’s result marked the weakest reading since October 2024.
Panelist insight: Commenting on the outlook, Jackeline Piraján and Daniela Silva, analysts at Scotiabank, stated:
“June’s data confirms that indexation pressures were consolidated in the first half of the year, and their impact is expected to diminish in the coming months. […] Despite the relief provided by the latest inflation figures, the main drivers of the decline—food and regulated prices—pose a bittersweet scenario for BanRep.”
