(Bloomberg) -- Colombian consumer prices unexpectedly dropped for the first time in more than three years, surprising all analysts and bolstering President Gustavo Petro’s arguments for deeper interest rate cuts.
Consumer prices fell 0.13% in October from a month earlier, compared to a median forecast of a 0.16% rise among economist surveyed by Bloomberg. All 24 analysts had expected the reading to be positive.
Annual inflation slowed to 5.41%, its lowest level since 2021. The central bank targets annual consumer price rises of 3%, plus or minus one percentage point.
The central bank has lowered interest rates by 3.5 percentage points to 9.75% since December. In recent months, some board members have voted to accelerate the easing cycle. President Gustavo Petro and Finance Minister Ricardo Bonilla have repeatedly called for faster easing to revive sluggish growth.
The central bank holds its next policy meeting on Dec. 20.
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