Inflation rises in Colombia; the highest in the last 21 years, according to DANE

Juan Daniel Oviedo, director of the National Administrative Department of Statistics (DANE), explained that the variation of the Consumer Price Index (CPI) in the first 4 months of the year reached 5.66%, higher than the 2.16% of the same period of 2021.

Referring to year-on-year inflation, Oviedo said that this is the highest since July 2000, when the CPI reached 9.29%.

“This is the highest inflation of the last 21 years”, the official stressed. In 2021, the interannual variation in the first four months was 1.95%.

The official explained that the change in the CPI in April was driven by clothing and food.

Given the constant rises in inflation, the Banco de la República began a cycle of interest rate hike to prevent the CPI from drifting too far from the inflation target, which is 3% per year.

In its most recent meeting, on April 29, the issuer raised them by 100 basis points, setting them at 6.00%a decision that was made to address the country’s inflation without affecting the economy.

The Bank of the Republic added that the “Inflation expectations for 2022 are around 7%. For longer horizons they converge towards the 3% target, as indicated by the expectations of 4% by the end of 2023 and 3.7% at 24 months”.

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Inflation rises in Colombia; in April it was the highest in the last 21 years

Here, the report corresponding to April 2022: