Colombia’s inflation rate rose more than predicted in August, ending a period of 22 months below targeted inflation range.
According to Colombia’s Central Bank, overall consumer prices have increased more than 3% compared to August 2013. Prices were up 0.2% from the previous month, which is more than experts predicted, reported Bloomberg News Monday.
Housing costs and food prices experienced some of the biggest surges, growing respectively 3.63% and 3.47% compared to the same month the year before.
The Central Bank targets a 3% annual inflation rate, which has been below the favored percentage for almost two years.
In late August, the Central Bank increased the interest rate by 0.25% for the fifth time in five months in an attempt to control inflation after the economy expanded at the fastest pace in two years.
MORE: Colombia’s central bank raises lending rate to 4.25%
During the first quarter of 2014 the Colombian economy grew 6.4%, and the yearly growth is expected to end at 5%.
Sources
- Índice de precios al consumidor (IPC) (Central Bank of Colombia)
- Colombian Inflation Rate Accelerates to Fastest Pace Since 2012 (Bloomberg)