By Nelson Bocanegra
BOGOTA (Reuters) – Colombia’s 12-month inflation is forecast to proceed decelerating in September, regardless of the impression of a truckers’ strike, in line with a Reuters ballot on Wednesday, whereas expectations for this yr stay secure.
In accordance with the median forecast from 20 analysts, Colombia’s 12-month inflation will attain 5.83% by September, decrease than the 6.12% reported by the top of August, however nonetheless manner above the central financial institution’s long-term goal of three%.
If the median forecast is met, shopper costs will rise 0.26% in September, just like the 0.25% in the identical month final yr, however increased than the 0% registered in August.
Analysts’ estimates ranged from 0.17% to 0.38%.
In September “the schooling sector is reactivated by the varsity calendar, whereas we anticipate to see average inflation in the remainder of the sectors,” stated Jackeline Pirajan, Scotiabank’s chief economist for Colombia.
She added the impact of the nationwide strike on meals costs was seen on the beguiling of the month however “is fading rapidly.”
The South American nation confronted a four-day truckers’ strike in the course of the first week of September in protest of a rise in diesel costs, inflicting meals and gas shortages in main cities.
The numerous inflation slowdown has been the primary cause behind the central financial institution board’s discount of its rate of interest by 275 foundation factors since its downward cycle started in December 2023.
On Monday, the financial authority reduce the speed by 50 foundation factors to 10.25%, in a divided vote the place three of the seven board members requested a discount of 75 foundation factors. The remaining 4 had been inclined to stay extra cautious in an effort to management inflation.
These polled now anticipate inflation to finish this yr at 5.6%, virtually unchanged from the 5.61% projected final month, whereas expectations for the top of 2025 slowed to three.70%, down from 3.75% within the earlier survey.
