COLOMBIA: Inflation To Close 2017 Above Target - Central Bank

(RTTNews) - Colombia's central bank indicated that inflation expectations for December 2017 are at 4.1% per year, slightly above the ceiling of the monetary authority's target, between 2% and 4%.

In 12 months, the annual inflation rate in Colombia will be at 3.6%, added the central bank in its August inflation report.

The Colombian central bank indicated that in July inflation was within the target range as a result of the dissolution of the strong temporary supply shocks that diverted it from the target. However, the contribution of food prices to the decline in inflation could be reversed during the second half of this year.

Meanwhile, Colombia's oil price and terms of trade for the remainder of 2017 are slightly lower than anticipated at the beginning of the year. The primary correcting factor was the fall in imports, but since the second quarter, exports have recovered.

Regarding Colombia's economic growth, the central bank indicated that for the second half of the year are expected annual growth rates between 1.8% and 2.0%.

Regarding monetary policy, the central bank cited it at its last meeting at 5.5%. Compared with other Latin American countries, the policy rate is at an average level and is expected to be lower in 2018 than the most important Latin American countries, according to the entity.