Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Colombia's consumer prices could have fallen slightly in June, analysts say

Published 07/01/2021, 11:50 AM
Updated 07/01/2021, 11:56 AM
© Reuters. FILE PHOTO: People wearing face masks shop in the commercial sector of San Victorino during the Christmas sales season as the coronavirus disease (COVID-19) outbreak continues in Bogota, Colombia December 5, 2020. REUTERS/Luisa Gonzalez

By Nelson Bocanegra

BOGOTA (Reuters) - Consumer prices in Colombia could have fallen 0.08% in June, mostly due to food supplies returning to normal following a long-running wave of protests and blockades, a Reuters poll revealed on Thursday.

Estimates from 14 analysts fluctuated between a fall in prices of 0.28% and an increase of 0.21%.

If the poll's median estimate is achieved, it will contrast with Colombia's 1% increase in inflation in May, when consumer prices were affected by national protests which saw highways blocked across the country, affecting centers of production and international trade.

"Our estimate takes into account the recovery in domestic supply, which would lead to a correction in prices," bank Bancolombia (NYSE:CIB) said in a statement.

"This could be partially offset by the effect of the exchange rate on some imported foods and the evolution of international prices for goods such as corn and soybeans," it added.

The government's DANE statistics agency is expected to publish the monthly inflation figures on July 3.

If the median forecast is reached, inflation for the last 12 months will reach 3.61%, higher than the 3.35% as of May, and above the central bank's long-term target of 3%.

Furthermore, estimates for annual inflation in 2021 have risen to 3.72%, up from 3.30% in last month's poll.

In a similar vein, analysts now forecast inflation to close 2022 at 3.10%, up from estimates of 3% in the previous survey.

Low inflation has been one of the central bank's chief reasons for keeping its benchmark interest rate stable at a historic low of 1.75% over the last nine months as it seeks to support economic recovery.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.