Programming and Inflation Department

Banco de la República (the Central Bank of Colombia) is required by the Constitution to maintain the purchasing power of Colombia’s currency in coordination with general economic policy1. In order to fulfill this mandate, the Central Bank of Colombia’s Board of Directors…

Banco de la República (the Central Bank of Colombia) is required by the Constitution to maintain the purchasing power of Colombia’s currency in coordination with general economic policy1. In order to fulfill this mandate, the Central Bank of Colombia’s Board of Directors…

Banco de la República (the Central Bank of Colombia) is required by the Constitution to maintain the purchasing power of Colombia’s currency in coordination with general economic policy1. In order to fulfill this mandate, the Central Bank of Colombia’s Board of Directors…

Monetary Policy in Colombia

As per its constitutional mandate, Banco de la República must ensure that the purchasing power of the currency is maintained in coordination with the general economic policy1. In order to fulfill this mandate, the Board of Direc­tors of…

Banco de la República is currently in the process of modernizing its Inflation Report with the goal of communicating an analysis of economic conditions and forecasts for the economy in a better way. For that reason, as of the October edition, the report will be structured as…

In March, inflation stood at 3.21% (graph A) and the average of core inflation indicators is 2.82%. These figures are lower than was expected a quarter ago and close to the 3.0% inflation target. The lower actual inflation versus the forecast is explained mainly by tradables (0.9%) and non-…

In December 2018, inflation and all core inflation indicators fell close to the 3.0% target. Inflation expectations to one and more years are around 3.5%. The new economic activity figures for the last quarter of 2018 suggest that economic growth is still recovering from levels of output lower…

In the third quarter of 2018, inflation rose less than expected by analysts and the Central Bank’s technical st

During the second quarter of 2018, inflation and inflation expectations, as well as several of the core inflation indicators, tended to stabilize and stood close to the 3.0% target. In that period, the economy´s growth could have been low, although improving, with a spare capacity that would…

In the first quarter of 2018, inflation and core inflation fell more than projected and accelerated their convergence to the 3.0% target. In March 2018, the annual variation of the CPI and the average of core inflation indicators stood at 3.14% and 3.64%, respectively. These figures were close…

The Inflation Targeting Scheme in Colombia

OBJECTIVES

The Inflation Targeting Scheme in Colombia

Global economy continued to recover in the fourth quarter of 2013, thanks to the added momentum in the developed economies, especially the United States. In the euro area, the economic indicators pointed to low, but positive economic growth. Growth in the major emerging countries of Asia and…

In June 2012 annual inflation stood at 3.2%, down by 20 basis points (bp) from the figure of March, resuming its downtrend after remaining relatively stable in April and May. From March to June, year-on-year change in the consumer price index (CPI) for food fell from 4.6% to 4.2%, accounting…

In September 2012 annual change in the consumer price index (CPI), core inflation measures, expectations at different horizons and inflation forecast for December stood around the mid-point of the target range (3%). At the end of the third quarter annual inflation stood at 3.08%, down by 12…

In March 2012, annual inflation was 3.4%. This is 15 basis points (bp) less than the rate recorded in December (Graph A). A decreasing trend in annual inflation started in October, when inflation reached its highest level in 2011 (4.0%).

External demand during the first half of 2013 was somewhat weaker than expected. In the United States, our largest trading partner, the increase in private spending is being offset partly by fiscal consolidation, which has led to a slight decline in the forecast for that country’s growth. The…

At the end of 2012 annual inflation stood at 2.4%, lower than the long-term target (3%) and within the year’s target range (2%-4%) (Graph A). Fourth-quarter inflation results were lower than average market expectations and also below the rates expected by Banco de la República’s technical staff…