Colombian Core Inflation Slows to Lowest Level Since 1999

Colombia’s inflation rate excluding food prices fell to its lowest level since at least 1999 in January, the central bank said.

Inflation without food costs eased to 2.12 percent, while the two other measures of so-called “core inflation” tracked by the central bank slowed below 3 percent, according to data published today on the central bank’s website.

Colombia’s peso bond yields fell to a record low today as traders increased bets on interest-rate cuts, after a report yesterday showed consumer prices rising at their slowest pace in almost three years in January. Banco de la Republica cited the reduced inflation risk and below-potential economic growth in its decision last month to cut borrowing costs for the fifth time since June.

To contact the reporters on this story: Matthew Bristow in Bogota at mbristow5@bloomberg.net; Oscar Medina in Bogota at omedinacruz@bloomberg.net

To contact the editor responsible for this story: Andre Soliani at asoliani@bloomberg.net

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