2024-01-10 10:51:22
This Tuesday, the National Administrative Department of Statistics (Dane) revealed the figure for the Consumer Price Index (CPI) for all of 2023, which will serve as the basis for the increase in the cost of products in the family basket and rent in this 2024.
(Read also: Colombia Inflation 2023: this is how the value of the CPI 2023 was determined).
After knowing the 12 percent increase in the current legal monthly minimum wage in Colombia for this year, leaving it at a total of $1,300,000, without the transportation subsidy, Colombians were waiting for the CPI data. This Tuesday, they learned the precise data with which inflation closed in 2023.
In this way, the CPI will be the basis for the increase in the cost of living in the country.
(Keep reading: CPI in Colombia: these are the products that will not rise in 2024 with inflation).
Photo:
Jaiver Nieto Álvarez /ETCE
What was the CPI 2023 figure?
The Dane is the official entity in charge of announcing the corresponding CPI figure.
This Tuesday, around 6 pm, it revealed that the annual variation for 2023 was 9.28%.
“In December 2023, the annual variation of the CPI was 9.28%, that is, 3.84 percentage points lower than that reported in the same period of the previous year, when it was 13.12%,” said Dane.
(More: Property tax Colombia 2024: batteries, this will be the increase in cadastral appraisals).
The products that will rise with the CPI in Colombia
The products in the family basket (more than 400 items) that will have the increase are divided into twelve groups:
– Food and non-alcoholic beverages.
– Alcoholic beverages and tobacco.
– Clothing and footwear.
– Accommodation, water, electricity, gas and other fuels.
– Furniture, household items and ordinary home maintenance.
– Health.
– Transport.
– Information and communication.
– Recreation and culture.
– Education.
– Restaurants and hotels.
– Various goods and services.
For this last period (December), Dane specified that it was the Transportation division that had the greatest variation. It was 15.42%.
Likewise, those products that are part of the Information and Communication division were the ones that had the least variation. Of course, Dane pointed out, “in December 2023 the largest price increases were recorded in the subclasses: mobile telephone equipment, similar and repair (1.10%) and fixed and mobile communication services and internet provision (0 .05%)”.
The increase in rents for this 2024
As stipulated by Law 820 of 2003, rents for urban housing may not increase more than 100% of the CPI amount, which, as has been said, was 9.28%.
The rule stipulates that the increase can only be applied when twelve months of the lease contract have expired.
Regarding commercial leases, there is no rule that decrees the limits of the increase. Even so, many real estate agencies take the CPI as a starting point to negotiate increases.
How is the CPI calculated?
The CPI is a measure of the change (variation) in the price of goods and services representative of household consumption in the country known as the basket, according to Dane.
Therefore, it fundamentally serves to: measure price changes of the goods and services that make up the basket, and with this the inflation periods; compare the Colombian economy with that of other countries; and understand the evolution of the country’s economic situation and project it.
Month following month, Dane records the price of the more than 400 items in the basket by visiting different distribution channels in 38 cities in the country, where citizens go to purchase different goods and services. In this way, the entity records price changes (whether they rise or fall) and calculates the variation between one time period and another.
How was the CPI variation in 2022?
The annual behavior of the CPI for 2022 was 13.12 percent, which was mainly explained by the annual variation of the ‘Food and non-alcoholic beverages’ divisions, with a variation of 27.81 percent and ‘Restaurants and hotels’ , with a variation of 18.54 percent, according to Dane data.
For December 2022, the largest price increases were recorded in the
subclasses arracacha, yam and other tubers (109.84%), onion (106.81%) and cassava for home consumption (88.08%).
As for the division with the lowest annual variation, it was ‘Information and communication’, with 0.25 percent. “In December 2022, the largest price increase was recorded in the mobile telephone equipment, similar and repair subclass (3.77%). Fixed and mobile communication services and Internet provision did not present an annual variation,” the entity noted. in the report.
Nataly Barrera
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