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Colombia CPI inflation 12.13% y-o-y in Jun-23

- Colombia's CPI inflation in June 2023 stood at 12.13% year-on-year, marking a slight decrease from the previous month's inflation rate of 12.36%.
- While the current inflation rate is marginally higher than the one-year average and remains significantly below the long-run average, inflationary pressures in the country remain persistent.

Banco de la Republica Colombia: Jun-23

• The Banco de la República's decision to maintain the interest rate at 13.25% reflects a strategic response to fluctuating inflation rates and declining inflation expectations among economic analysts.
• Despite a 3.0% annual growth in GDP in the first quarter of 2023, a slowdown in economic activity and a significant adjustment in the external imbalance underscore the complexity of the economic landscape.
• The notable appreciation of the Colombian peso and reduction in risk premiums, in the context of a volatile global economy, highlight the necessity for the central bank to stay vigilant and responsive to changing economic trends.