Headline inflation in Colombia fell to 5.3% YoY in November from 5.5% in October. The CPI ex-food and regulated items fell to 4.9% from 5.0% (see our chart pack for more details) in a move that was helped by favourable base effects in November. Base effects are more neutral in December before becoming potentially more favourable at the start of the year. The key will be the level of indexation pressures that flow through into the first few months of the year. Meanwhile, inflation expectations have shown a troubling rise in all measures, which will be closely monitored by BanRep going forward.
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