Inflation seems to be peaking and will start to slow down: experts

Economic analysts and unions stated that inflation in Colombia seems to be reaching a ceiling, so a period of slowdown will begin.

This view was made known by several experts after the publication of the results of the consumer price index (CPI) by the National Administrative Office of Statistics (Danish), which resulted in an annual inflation reduction to 13.25% in January in Colombia, an indicator that remains the highest in this century.

Sergio Olarte, chief economist at Scotiabank Colpatria, said inflation appears to be reaching a ceiling this year and will slow significantly.

“The base we compared ourselves to last year was extraordinarily high, which will mean that food in particular will help inflation fall over the course of the year to the end of 2023 with a variation of around 9%,” the expert explains.

He added that the Banco de la República will make one last hike at its meeting in March, keeping interest rates steady for a long time until a significant slowdown in inflation is observed by the fourth quarter of 2023.

In turn, Andrés Moreno, professor of economics at the Universidad del Rosario, argued that the price increase in January is due to the price adjustment for gasoline, minimum wage and food.

“Soon the effects will be visible, for now we are at maximum annual inflation,” Moreno said.

Meanwhile, Maria Claudia Lacouture, president of the Colombian American Chamber of Commerce (AmCham Colombia), stressed that the data Dane revealed in January about high inflation reaffirms that this is the enemy to be defeated in 2023.

“Public-private actions will prevent household finances and job creation from deteriorating further,” said the union leader.

Source: El heraldo