Colombia’s inflation rate fell to 5.05% in May 2025, the lowest since October 2021, driven by lower inflation in sectors like transportation and housing. The monthly rise in consumer prices was 0.32%, less than expected.
The annual inflation rate in Colombia has dropped to 5.05% for May 2025, a decrease from 5.16% the previous month, and it also came in just shy of market expectations of 5.1%. This is notably the lowest inflation rate recorded since October 2021, indicating strides in controlling rising prices.
The decline in the inflation rate can be attributed primarily to easing prices in several critical sectors. For instance, transportation saw inflation rise to 5.26%, a slight decrease from 5.29%. Housing inflation fell to 5.82%, down from 6.09%, while both restaurants and hotels decreased to 7.41% from 7.71%. Education also showed improvement, with inflation dipping to 7.35% from 7.38%.
Conversely, there were minor increases in certain categories. Food prices rose slightly to 4.71%, up from 4.61%, and health sector inflation edged up to 5.34% from 5.31%. This mixed trend underscores the complexities of the current economic landscape in Colombia.
Looking at monthly data, consumer prices recorded a rise of 0.32%, which is below the anticipated 0.5%. This marks the smallest monthly increase seen since November, following a 0.66% rise in April, suggesting that the rate of inflation may continue to stabilize after significant fluctuations.
In summary, Colombia’s inflation rate saw a decline to 5.05% in May 2025, the lowest figure since late 2021. This reduction reflects improvements in several key sectors such as transportation and housing, although there were small upticks in food and health prices. Monthly inflation also registered the smallest increase in several months, indicating potential stabilization in the economy.
Original Source: www.tradingview.com
