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platano...Colombian inflation

Had a quick look for the thread where you were asking about the Colombian inflation figure, from Bloomberg:

Colombia Inflation Slows in April on Strengthening Peso
May 1 (Bloomberg) -- Colombia's rate of inflation slowed in April as the strengthening peso made imported goods cheaper.

Consumer prices fell to 0.44 percent from 0.77 percent in March, the government's statistics agency said today in Bogota. Inflation in the 12 months through April was 5.01 percent, down from 5.03 percent in March.

``The exchange rate continues to have an important effect on the price of imported goods,'' said Benito Berber, an analyst with HSBC Securities Plc, in a telephone interview from New York. The peso has strengthened more than 13 percent in the last 12 months, making imported goods cheaper.

In a bid to stimulate economic growth, the central bank, which targets 2005 inflation of 4.5 percent to 5.5 percent, has held the overnight lending rate at 6.5 percent this year after lowering it three times last year.

The 0.44 percent monthly inflation rate was lower than the 0.58 percent median forecast of 24 economists surveyed by Bloomberg.

``I don't see the bank lowering rates yet because this would endanger the inflation target,'' Berber said.

Retail sales rose 3.47 percent in February from a year earlier, the slowest pace in 10 months, led by furniture, office equipment, household appliances, vehicles and motorcycles, the national statistics agency said on April 29. Industrial production rose 0.03 percent in the same month from a year ago, the lowest level in 13 months.

South America's fourth-largest economy expanded 4 percent in 2004 for the second consecutive year, the highest back-to-back annual rates since 1994 and 1995. The government expects the economy to grow at the same rate this year.

To contact the reporter on this story:
Andrea Jaramillo in Bogota at ext. 230 or ajaramillo1 at bloomberg.net

By Hunter on May 1, 2005, 21:08 in Friendly Talkzone.

platano says on May 1, 2005, 21:17:

Thanks, Hunter... This confirms my impression that the Colombian economy is being well managed. The inflation rate is admirable considering it has been above 30% in the past.

And I had no idea the economic return was 4%. That is an exremely good growth rate. Add on top of that the strengthened peso and Colombia looks like a very good investment opportunity for folks who have capital to invest. Unfortunately I don't.

Platano, estudiante del Manual de Urbanidad y Buenas Maneras por Manuel Antonio Carreño
Oxigeno Verde
Foto de Platanito chinito

plátano

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Hunter says on May 1, 2005, 21:23:

platano Been a bit busy the last three weeks, back to normal in a few days, otherwise I would have posted this sooner. Here is a link that I use for Colombian news in English, the best link for economic information is the Latin Focus one, which has posts in English and Spanish.

http://caribenet.com/cartagena/modules.php?op=modload&name=Web_Links&file=index&req=viewlink&cid=3

Hunter

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