Inflation in Colombia continues to rise significantly, the indices seem to go hand in hand with the world economy and the consequences left by the pandemic caused by Covid-19, According to the National Administrative Department of Statistics (Dane), for the month of March the consumer price index (CPI) had a variation of 1%, an indicator that was nearly double that of the same month in 2021, when it stood at 0, 51%. In addition, inflation in the year to date, that is, at the end of the first quarter, stood at 4.36%, compared to an indicator of 1.56 percent a year ago, that is, almost three times.
This brings complications for the pocket of Colombians, since the increase in the price of products produces less possibility of supply and reduction in consumption. According to Dane, the monthly behavior of the total CPI in March 2022 was mainly explained by the monthly variation of the food and non-alcoholic beverages and accommodation, water, electricity, gas and other fuels divisions.
In this way, the largest price increases were recorded in the subclasses potatoes (110.22%), cassava for home consumption (85.14%), bananas (82.57%), onions (10.65%) and blackberries (9 .60%). The lowest price increases were reported in the subclasses rice (0.54%), arracacha, yams and other tubers (0.83%) and concentrates to prepare soft drinks (1.55%). Added to the subclasses meals in table service and self-service establishments, with 0.95%; beef and derivatives, with 0.71%, and electricity, with 0.44%.
On the other hand, the largest price decreases were reported in the subclasses pork and derivatives (-2.34%), carrot (-1.70%) and bananas (-0.32%). Also, the subclasses with the lowest contributions were those belonging to fixed and mobile communication services and internet provision, with -0.43%; clothing for women, with -0.06%, and enrollments and enrollments in technical, technological and university careers, with -0.04%.
Since February, the Government has been announcing the not very encouraging panorama of rising prices in Colombia, for which Minister José Manuel Restrepo announced a package of measures that include:
– The central bank will continue with the process of normalizing monetary policy
– The nation will reduce the costs of agricultural inputs
– The Government will reduce tariffs on agricultural imports
– The Government will work with producers to increase food supply
– The Ministry of Transport will try to improve logistics in the main Colombian ports with lower costs
– The Government will provide additional lines of credit and insurance to food producers
– One million more families will be included in government subsidies
It should be noted that the central bank has raised borrowing costs by 2.25 percentage points since September, to 4%, and in January surprised analysts with a higher than expected increase in an attempt to curb the rise in prices.
Inflation is above target in all major Latin American economies, as well as in other emerging markets and rich countries, amid a rebound in global demand while supply chains have yet to fully recover from the effects of the pandemic. pandemic, businesses pass on higher food and energy costs to customers; and the conflict unleashed in Europe does not let up.
KEEP READING