Colombia 2010 inflation seen at 3.11%

The Colombian central bank’s monthly survey of inflation expectations shows analysts expect the rate for 2010 to be 3.11%, down from the 3.28% rate anticipated a month earlier.

The 44 analysts polled by the monetary authority had a median prediction that consumer prices in June will rise 0.12%, after rising 0.1% in May.

The bank’s official target range for this year is between 2% and 4%.

In 2009, the inflation rate ended at 2%, below the bank’s target range of 4.5% to 5.5% for the year.

Analysts see the Colombian peso ending 2010 at COP1,956 against the U.S. dollar, compared with a closing rate of COP2,043 in 2009.

Analysts on average expect the central bank’s benchmark interest rate will end June at 2.99% and will stand at 3.27% in December. The bank has cut rates by 7 percentage points since December 2008, to 3%.

(Darcy Crowe, Dow Jones)

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