Colombian Inflation Quickens, Raising Odds of Further Rate Rises

Colombian inflation accelerated to its fastest pace since 2024, surprising to the upside and increasing the likelihood the central bank will raise interest rates this month. The surprise is hawkish for policy and is likely to push local yields higher, weigh on Colombian equities and the peso, and sustain a tighter rate trajectory.

Analysis

Colombian inflation accelerated to its fastest pace since 2024, surprising to the upside and increasing the likelihood the central bank will raise interest rates this month. The surprise is hawkish for policy and is likely to push local yields higher, weigh on Colombian equities and the peso, and sustain a tighter rate trajectory.