Revaluation of the peso sharpened since May 3

While several analysts say that the dollar in Colombia it will continue to fall, in line with what has been happening against other strong currencies, this movement will cause an effect that will contribute to lower inflation pressure and even to help lower it more than what it has shown in the last three months.

C.omitinputs, capital goods, vehicles, spare parts, household appliances, among othersat lower prices generate less impact on prices, which in the end generates benefits for consumers.

(Advice on possible price rises and economic slowdown).

In March the annual inflation ceiling was presented with 13.34%, in April it dropped to 12.82%, a month later it was at 12.36% and for the sixth month of the year it reached 12.13%.

According to the most recent Fedesarrollo Financial Opinion Surveyamong economic analysts, annual inflation for July would be located at an average of 11.64% and for December of this year at 9.16%.

(Annual inflation in July would reach 11.64%).

There are even those who already consider that in this sense, by mid-2024 the inflation target (annual variation of the CPI) at 3%, in a range between 2% and 4%, could be met.

Felipe Campos, investment and strategy manager at Alianza Valores and Fiduciaria Alianzaensures that “Now the following excellent news should follow. With the 20% drop in the dollar, inflation this semester will end up giving a downward surprise. Each previous dollar crash has ended up accelerating the trip to 4%, which all analysts expect by the end of 2024, but which some of us think could come in the middle of that year.”.

(Household spending in the country registered a 4% drop in June).

The revaluation of the peso began to sharpen from May 3 when the Representative market rate came to $4,713.

As of that day, 90% of the revaluation (appreciation) of the Colombian currency for the entire year has occurred with 15.6%, only in that period. The total revaluation of the peso since the beginning of the year is 17.2%.

(Rich countries do not reach an agreement to lower the debt of the poor).

The Representative Market Rate for this Friday is $3,980.20 and fell $10.95 compared to Wednesday.

According to Bancolombia, the behavior was driven by the publication of the main price indices of the euro area. In particular, the CPI registered a lower annual increase in June with 5.5%, which made the currencies of the region strengthen.

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