Colombia records 11.44% inflation, the highest in two decades
The steady rise in inflation during 2022 has undoubtedly impacted the pockets of Colombians, as it has thousands of households around the world. In Colombia, according to DANE, inflation reached 11.44% in September, meaning that the cost of living increased by more than 0.6 basis points compared to August, when the indicator was at 10.84%.
As has been the case in recent months, foodstuffs, which rose by 26.62%, continue to be the main cost of living increase. After learning of the data, President Gustavo Petro made a statement on his Twitter account, giving a slap on the wrist to the board of directors of the Banco de la República. "The rise in the internal interest rate, rejected by the Minister of Finance, but which had the backing of the entire board of directors of Banco de la República, will only transfer the global recession to the Colombian economy," warned Petro.
The price of life has been overshadowed by multiple components including international and local aspects. The war between Russia and Ukraine, for example, is one of the external factors directly affecting the agricultural sector, due to imports of fertilisers used in several crops, as Ukraine represents, among others, 15% of world wheat production. However, it should be borne in mind that the inflationary phenomenon affects countries in the region in general. Consumer prices in Brazil fell slightly in September and inflation in the last 12 months fell to 7.17%, according to official data released yesterday.
The National Broad Consumer Price Index fell for the third consecutive month, to 0.29%, driven by the transport sector, -1.98%, amid lower fuel prices, the official statistics institute said. In addition, food prices recorded a -0.51% decline for the first time since November 2021.
On the other hand, Chile, although it has the third highest inflation in the region 13.7%, presented a slight fall in September in the annual CPI, despite being in the midst of an inflation that has soared in the country this year mainly due to the increase in fuel prices. Argentina, on the other hand, is one of the countries where inflation has soared to 75.5% annually. However, the economy has accumulated growth of 6.4% in the first seven months of 2022 and the International Monetary Fund (IMF) estimates that it will close the annual period with an expansion of 4%. However, it should be borne in mind that the inflationary phenomenon affects countries in the region in general. Consumer prices in Brazil fell slightly in September and inflation in the last 12 months fell to 7.17%, according to official data released.
Meanwhile, according to the World Bank, the Latin America and the Caribbean region recovered some normality with an expected growth of 3% this year. According to the Bank, Argentina is expected to grow by 4.2% in 2022, Brazil 2.5%, Chile 1.8%, Colombia 7.1%.
According to Pierre-Olivier Gourinchas, economic advisor and director of the IMF's Research Department, this year's conflicts "will reopen economic wounds that were only partially healed after the pandemic". Despite data indicating mild growth, the worst is yet to come and, for many, 2023 will feel like a recession.
Americas Coordinator: José Antonio Sierra