Finance Minister Ricardo Bonilla assured that the inflation data revealed last Friday by DANE, which reached 12.82% per annum, is a sign that it is starting to ease.
“In the remainder of the year, we are going to reach the target of inflation reaching single digits,” the official said.
“Food fell as predicted, it fell for the poor. If you look at the behavior of the sector, what has risen is the price of fuel, but the policy of the government is to continue until the international price is equal and the FEPC deficit is closed,” Bonilla clarified.
“Great news for Colombians. In April inflation was 0.78%. Data is lower than that recorded in the same month of 2022 (1.25%),” Minister Bonilla posted on Twitter.
He added: “It is also lower than that reported in March 2023 (1.05%). The cost of living is starting to fall: in the last 12 months it was 12.82%; in March, 13.34% was reported”.
“At the next meeting, in the month of June, the Banco de la República will start reviewing the interest rate. Everything indicates that the rate hike process is over, we hope that the road will be for the rest of the year to stabilize and lower”.
For his part, former finance minister José Antonio Ocampo said that the fall in inflation in April is good news for the country.
“For poor and vulnerable households, it’s the fourth monthly decline,” Ocampo wrote on his Twitter account.
He assured that these data coincided with very low producer price inflation for two consecutive months.
“It’s the beginning of a very positive process for the country,” he explained.
In turn, Laura Peña, BBVA Research economist for Colombia, pointed out that food inflation caused the biggest bearish surprise in April, ranging from a year-over-year variation of 21.8% to 18.5%.
He said this is due to declines across all sub-baskets, with the prominence of perishables dropping from 23.7% to 16.9%.
Source: El heraldo
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
