Colombian economy
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The Consumer Price Index (CPI) continued its downward behavior, standing at 7.16% for its annual variation in April (that is, compared to the same month in 2023).
This represents a decrease of 5.66% compared to the figure recorded in April of last year, according to the information revealed by DANE this Wednesday.
The figure revealed by DANE was in line with analysts’ estimates. According to the majority of those consulted in the Fedesarrollo Financial Opinion Survey, the CPI for March was 7.16%. By the end of the year, the data from this survey places the indicator at 5.51%, in line with the data from the Banco de la República survey (in a range between 5.5% and 6%).
“We call on the Bank of the Republic to see how the reduction of intervention rates can be accelerated. Today the real rate is the difference between the intervention rate of 11.75% and the accumulated inflation of 7.16%. This means that we have a real rate of 459 points,” reacted the Minister of Finance, Ricardo Bonilla.
The minister assured that this is an obstacle to the financial closure of different types of projects and that “for economic recovery we need to accelerate this process, the reduction in interest rates.”
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The products that rose and fell the most
The division Food and non-alcoholic beverages registered a monthly variation of 1.16%, this being the highest monthly variation. In April 2024, the largest price increases were recorded in the subclasses: tree tomato (22.87%), blackberries (11.07%), and potatoes (9.50%).
While the largest price decreases were reported in the subclasses: condiments and culinary herbs (-4.06%), corn and its derivatives (-2.45%) and carrots (-2.25%).
The division Accommodation, water, electricity, gas and other fuels registered a monthly variation of 0.93%, this being the second largest monthly variation. The largest price increases were recorded in the subclasses: services related to co-ownership (2.57%), electricity (1.56%) and effective rental (1.11%). And the largest price decreases were reported in the subclasses: gas (-3.49%), materials for housing conservation and repair (-0.10%).
The division Recreation and culture registered a monthly variation of -0.28%, this being the lowest monthly variation. This is due to the subclasses: complete tourist packages (-2.48%), equipment for the reception, recording and reproduction of sound only (-1.96%) and equipment for the recording, reception and reproduction of image and sound (- 1.59%). On the other hand, price increases were recorded in: cinemas and theaters (1.98%), veterinary and other services for domestic animals (1.00%) and recreational services (0.82%).
The division Information and communication registered a monthly variation of -0.10%, this being the second lowest monthly variation. The reason for this was that the prices of mobile phone equipment, similar equipment and repairs decreased (-1.63%).
On the other hand, the greatest contributions to the monthly variation in the twelve divisions of the total CPI were recorded in the following subclasses:
- Imputed rent with 0.13%.
- Effective lease with 0.10%.
- Fresh fruits with 0.07%.
The subclasses with the lowest contributions were:
- Gas with -0.04%.
- Complete tourist packages with -0.01%.
- Intermunicipal, inter-regional and international transportation with -0.01%.
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A look at inflation in the last year
From the monthly analysis (compared to March), the variation was 0.59%. The data is mainly explained by the food division, which grew 1.16%.
Now, between April 2023 and the same month of 2024, the annual variation of the CPI was 7.16%. This was mainly explained by the annual variation of the Accommodation, water, electricity, gas and other fuels and Transportation divisions.
The division Education registered an annual variation of 11.4%, this being the highest annual variation. In April 2024, the largest price increases were recorded in the subclasses: diplomas, continuing education, pre-icfes, pre-university (16.42%), secondary education (12.91%) and preschool and primary basic education (12.07%). .
About Transport, an annual variation of 10.42% was recorded, the second largest. In April 2024, the largest price increases were recorded in the subclasses: vehicle fuels (34.97%), tolls (14.93%), and school transportation (13.50%).
While the division Information and communication registered an annual variation of 0.03%, this being the lowest annual variation. In April 2024, the largest price increase was recorded in the subclass: fixed and mobile communication services and internet provision (0.71%). The only price decrease was reported in the subclass: Mobile telephone equipment, similar and repair (-9.17%).
