Colombian inflation eased to 0.50 percent in March versus 0.81 percent
in the same month last year, the government said on Saturday, showing
the effect the slowing economy is having on consumer prices.
The March figure was also lower than the 0.65 percent predicted in a recent Reuters poll of analysts.
Colombian gross domestic product contracted 0.7 percent in the
fourth quarter of last year as the global economic slowdown bit into
commodity export revenue. Foreign direct investment has also been
paralyzed by the world financial crisis.
Inflation over the 12 months through March was 6.14 percent versus
5.93 percent in the 12 months through March 2008, a government
statement said.
The central bank has a 2009 inflation target of 4.5 percent to 5.5
percent. Price rises in this Andean country are expected to keep
slowing, allowing this year’s inflation rate to fall within the bank’s
target range.
Colombia’s 2008 inflation rate was 7.67 percent. (Reuters)