The Colombian central bank’s survey of inflation expectations for 2011 showed an increase from the previous month with analysts on average projecting prices to climb 3.43% for the year, within the central bank’s target range of 2% to 4%.
The poll of 39 analysts, released Wednesday by the central bank, showed an increase in inflation estimates from the previous month, when the poll resulted in a projection of 3.21% inflation for 2011. The survey also projected that inflation for October should come in at 0.38% on month.
Inflation in September stood at 0.31%, much higher than economists’ expectations. The central bank started to increase interest rates earlier this year, but in its last two months, it decided to keep in check its key rate at 4.5% signaling that it was concerned about the local backlash of a potential global economic slowdown.
Inflation for the last 12 months through September stands at 3.73%.
The central bank’s poll also shows that analysts on average expect the foreign exchange rate to stand at COP1,867.27 to the dollar by the end of 2011. For the end of October, the average forecast is for the peso to trade at COP1,898.90. On Wednesday the peso traded at COP1,896 to the dollar from COP1,915 a day earlier.