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Colombia Unemployment Rate 9.25% (consensus 9.3%) in Sep-23

- The unemployment rate in Colombia for September 2023 was 9.25%, broadly in line with the previous month.
- The current unemployment rate is 1.02 percentage points below the one-year average and 2.69 percentage points lower than the long-run average.

Colombia Policy Interest Rate 13.25% in Oct-23

• The Banco de la República Colombia's choice to maintain its interest rate at 13.25%, despite a vote split where five directors supported the decision and two pushed for a 25 basis point cut, shows its apprehensions over the persistently elevated inflation level.
• The board accentuates the negative implications of enduring inflation, particularly its erosive effects on household incomes, especially for lower-income families, and its potential to stymie economic growth and employment in the longer horizon.
• While external uncertainties, primarily from international financial markets, add to the policy conundrum, future decisions by the board hinge on emerging data, emphasizing a cautious approach geared towards achieving the 3% inflation target and fostering sustainable economic activity.

Colombia CPI Inflation 0.54% m-o-m (consensus 0.5%) in Sep-23

- Colombia's CPI inflation in September 2023 grew by 0.54% m-o-m, the slowest pace since July 2023, but aligned with consensus expectations.
- This inflation rate is 0.33 pp below the one-year average, indicating an easing of recent inflationary trends.

Colombia PMI Manufacturing 47.8 in Sep-23

- Colombia's PMI Manufacturing in September 2023 stood at 47.8, indicating a contraction in the sector, but showing a slight improvement compared to the previous month.
- Despite this marginal improvement, the sector is still 1.66 points lower than the one-year average. Close monitoring and targeted intervention may be necessary to support the sector's recovery.