ColombiaOne.comColombia newsInflation in Colombia Continues the Slow Downward Trend

Inflation in Colombia Continues the Slow Downward Trend


Inflation in Colombia
Inflation in Colombia continues to decrease slowly. Credit: Public domain.

With the data provided by DANE, the price index in the country continues its downward trend. For this month of June, the growth stood at 0.30%, compared to 0.51% in June 2022.

Inflation in Colombia continues to decrease slowly. This trend started three months ago and brings the annual CPI to 12.13%, still well above the government’s forecasts for the end of 2023, which place it close to 9%.

Gasoline and rents, the items with the highest increases

According to the same data, the prices of fuels and rents, mostly linked to the CPI, are causing the cost of living to rise. Transportation costs are also increasing, mainly due to the price of gasoline, as well as the price of restaurants and hotels, alcoholic beverages, and tobacco.

Sincelejo and Bucaramanga are the Colombian cities that experienced the highest inflation in June, while Popayán had the lowest. In annual measurement, the highest inflation was observed in Sincelejo, Cúcuta, and Valledupar, with Villavicencio being the city with the lowest price growth in the last twelve months.

Food prices provide some relief

The increase in food prices, which was very high at the beginning of this inflationary spiral, is now experiencing a significantly lower increase. This brings relief to the pockets of the country, after two years of significant CPI growth that has affected the purchasing power of many Colombian families when it comes to grocery shopping.

Inflation in Colombia
The evolution of prices in Colombia. Credit: DANE

This month’s decrease aligns with expectations, according to experts. The director of DANE, Piedad Urdinola, stated that “the downward trend continues” in data that “show a new cycle in the cost of living.” Therefore, the government maintains the expectation of a single-digit CPI by December of this year.

Inflation in Colombia
CPI June 2023 data by divisions of expenditure. Credit: DANE – Twitter Piedad Urdinola

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