The Colombian central bank’s July survey of inflation expectations showed a increase from the previous month with analysts on average projecting prices to increase 3.3% for the year, within the central bank’s target range of 2% to 4%.
The poll of 39 analysts, released Monday by the central bank, showed inflation expectations rising from the previous month, when the outlook stood at 3.21% for the year.
The poll also projected that inflation for July should come in at 0.12% on month.
Inflation in June accelerated to 0.32%, above economists’ expectations. The central bank started to increase interest rates earlier this year, but the minutes from the last monetary policy meeting showed that at least one of the bank’s seven-member was against increasing the rate.
Another board member suggested that the rate should stay unchanged in the next meeting, which is slated for the end of this month.
The central bank’s poll also shows that analysts on average expect the foreign exchange rate to stand at COP1,795.83 to the dollar by the end of 2011. For the end of July, the average forecast is for the peso to trade at COP1,763.93. On Monday the peso traded at COP1,770 to the dollar.