The president of Colombia’s central bank has said it aims to bring down inflation in 2012.
In an interview with Dow Jones Thursday, Jose Dario Uribe said that even though the Colombian economy is buoyant, as a result of strong investment in the energy sector, inflation needs to be brought under control.
Colombia is bucking the global trend with the government expecting the growth of the economy for 2011 to stand at 5.5%, and growth of approximately 5% predicted for 2012.
However due to strong consumer demand, inflation for 2011 came in at 3.7%, 0.7 percentage points higher than the middle of the central bank’s target range of 2%-4%.
Uribe said “The strong vigor of domestic demand and consumer loans combined with higher basic inflation rates is concerning.”
The central bank president also said that Europe’s financial crisis needs to be solved to avoid the risk of the Colombian economy being negatively affected.
“A disorderly outcome in Europe could unleash unforeseen economic problems in various parts of the world,” he said.