January inflation in Colombia was 0.92% and the interannual rate fell to 8.35%, the National Administrative Department of Statistics (DANE) reported this Wednesday.
According to the organization, the Consumer Price Index (CPI) for January was 0.47 percentage points higher than that of December, while year-on-year there was a drop of 0.93 percentage points compared to the 9.28% recorded. in December.
The DANE explained in a statement that the prices that increased the most in January were those of transportation (1.99%), restaurants and hotels (1.72%), alcoholic beverages and tobacco (1.11%) and health (1. 10%).
Regarding the annual variation of the CPI, what weighed the most were the costs of Transportation (13.22%), restaurants and hotels (11.70%), alcoholic beverages and tobacco (11.55%) and education (11.41%). %).
“The inflation rate dropped sharply again. It is at 8.35 per year. We raised the minimum wage by 12%, so if we manage to maintain the decline in the inflation rate, the workers of Colombia will have a new promotion of their standard of living in real terms equal to or greater than last year,” celebrated President Gustavo Petro in a message on his X account.
For his part, the Minister of Finance, Ricardo Bonilla, highlighted the reduction in inflation and called on the Board of Directors of the Bank of the Republic (monetary authority) to make a new cut in interest rates.
In its first meeting of 2024, on January 31, the Bank of the Republic cut interest rates for the second consecutive time, which fell from 13 to 12.75%.
“From now on what we see (…) is that inflation will continue to fall because the statistical base, that is, inflation last year, in February and March, was particularly high, which will cause (. ..) in February we already see figures below 8%,” said the chief economist of Scotiabank Colpatria, Sergio Olarte.
The expert agreed with the Minister of Finance by pointing out: “it is expected that the Bank of the Republic will be able to increase the speed of lowering interest rates by three-quarters of a percentage point for its March meeting and leave the interest rate at 12%. “.