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”.
Inflation rises in Colombia; in April it was the highest in the last 21 years
Here, the report corresponding to April 2022:
In April 2022 the monthly variation of the Consumer Price Index #CPI it was 1.25%. Compared to April 2021, the variation was 9.23%.
🔗 https://t.co/Y6kS4JWtAe pic.twitter.com/jh3eI7N50K
– DANE Colombia (@DANE_Colombia) May 6, 2022