An analysis of the National Association of Financial Institutions (Anif) on the impact of an escalation of energy price in the Consumer Price Index (CPI) found that a 1% increase in the price of a kilowatt of energy impacts 0.47 percentage points inflation.
Within the framework of the webinar ‘Energy security, how has the country handled the El Niño phenomenon and what should it do in the short and medium term?’, José Ignacio López, president of Anif, pointed out that there is a considerable impact between an increase in the price of energy and an increase in the cost of living.
“This shows that it is not only relevant for the economy as a whole but also for the pockets of Colombians.“, he explained.
López highlighted that Bullish behavior also has other effects on the economy, among which the impact on economic growth stands out.. The analysis of the entity shows that “they begin to display lower growth rates amid energy price shock“he noted.
However, the entity also analyzed How long does it take for the economy to recover after a spike to $100 per kilowatt hour?, according to the VAR response impulse model. López explained that a increase of this type has a sharp drop in GDP for a prolonged period.
This crash shows that persistence is high and it takes between 15 and 16 months to recover normalized growth rates after the effect of the increases. “This reflects that the price of energy is very important for the economy as a whole.“he noted.
Now, despite the increases in the price of the public service that have been evident, The country still has competitive prices compared to countries in the world and the region. He added that this also has to do with the exchange rates of nations, with which this competitiveness is crossed by this variable behavior.
Taking into account the effects of energy prices on the cost of living, López called for diversifying the generation portfolio towards new technologies, at the same time expanding the offer to allow generation prices to remain stable. in the medium and short term.
DANIELA MORALES SOLER
Portfolio Journalist
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