DATA SNAP: Colombia's June CPI -0.06% Vs Consensus +0.13%
The country's statistics department, or DANE, said the consumer price index fell 0.06% in June from May, while a Dow Jones Newswires survey of seven economists had produced a median estimate of a 0.13% increase.
Inflation over the 12 months through June fell to 3.81%, sharply lower than the 4.77% in the 12-month period through May. The 12-month inflation wasn't that low since the period through June 1965, according to data from DANE.
Consumer prices rose 2.22% in the first half of the year.
The low inflation is caused by faltering consumer demand, in turn a consequence of the economic contraction. The country's economy is widely considered in recession after its gross domestic product contracted 0.6% in the first quarter of the year following a 1% contraction in the fourth quarter of 2008.
The closely watched food sector, which has a 28% weighting in the CPI, fell 0.60% in June as the price of tubers and plantains fell 10%. Prices of communication goods and services fell 0.06%.
The chairman of the central bank, Jose Dario Uribe, said last month that the inflation rate may end the year below the central bank's 2009 target range of 4.5%-5.5%.
With inflation falling and the economy shrinking, the Colombian central bank has reduced its key interest rate by 5.5 percentage points since December to 4.5%.
-By Inti Landauro, Dow Jones Newswires; 57-310 867 65 42 colombia@dowjones.com
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Publié le 04 Juillet 2009 Copyright © 2009 Dowjones
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