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Inflation in Colombia in June was -0.05%

Inflation in Colombia in June was -0.05%

Inflation in June of this year showed the effect of lifting the blockade that took place in the framework of the national strike and was in negative territory at -0.05%.

Inflation in Barranquilla this month was 0.05%, while Montreal, at 0.66%, Cartagena at 0.50%, and Sensiligo at 0.48%, were the coastal capitals with the highest CPI changes, and were ranked second, third and fourth nationally.

According to information provided by the National Administrative Statistics Service (DANE), expenditures on food, non-alcoholic beverages (-1.02%) and information and communications (-0.27%) were the ones that presented negative monthly changes.

The drop in food prices contrasts with the increase in May when inflation in this spending group was 5.37%. This is explained by the best terms of supply for products such as potatoes.

On the other hand, the variance in prices in the restaurant and hotel sector was the highest in June with 0.68, which is a result of the increased demand for these services in the context of revitalization and the impact of the embargo on the supply of products such as eggs and poultry.

The last time inflation was negative in the country was in November 2020 when it was -0.15%. In June 2020, there was also negative inflation of 38 basis points.

DANE Director Juan Daniel Oviedo explained that inflation so far this year is 3.13% and 3.63% annually.

Oviedo said negative inflation was introduced by a correction in the in-house food supply, but by pressure from protein prices.

“We have not yet seen a normalization of food prices at the retail level associated with the supply failure that occurred in May with the strike,” Oviedo said.

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Sergio Olarte, chief economist at Scotiabank Colpatria, confirmed that inflation was slightly negative due to the return of some food prices with supplies recovering in major cities during this month.

He pointed out that “potatoes, onions and perishable foods in general presented negative disparities, but the prices of some foods important to the family basket still persisted, such as chicken, eggs and beef.”