Inflation in Colombia likely eased in March after rising in the first two months of the year due to increased minimum wages and higher gas tariffs, according to a Reuters poll.
The median estimates from 22 analysts surveyed indicate that consumer prices in March will have risen by 0.58%, lower than 0.70% in March of the previous year and below the 1.14% recorded in February. Estimates from analysts ranged from 0.21% to 0.69%.
If this forecast is accurate, annual inflation through March would reach 5.15%, still above the Central Bank's target of 3%. Additionally, inflation expectations for year-end have increased to 4.42%, up from 4.22% in February, indicating that for the fifth consecutive year, Colombia is expected to miss its inflation target. Projections for 2026 have also risen to 3.61% from 3.50%.
Ongoing inflationary pressures have limited the national bank's flexibility in monetary policy, resulting in a pause in the interest rate cut cycle in January. However, most analysts in a recent Reuters poll anticipate that the monetary authority will reduce its benchmark rate at its upcoming meeting.
The country's DANE statistical agency is set to release its official inflation report for March on April 7.