Colombia recorded an inflation rate of 0.24% in September.

Between January and September, Colombia accumulated an inflation rate of 4.58%, compared to 8.01% during the same period in 2023.

Colombia recorded a 0.24% inflation rate for September, a figure below market expectations, driven by increases in education, restaurant, hotel, health, and transportation costs, according to the National Statistics Department (DANE) on Monday.

This figure compares to a 0.54% increase in September last year and a flat 0% rate in August 2024.

According to the median of a Reuters survey, the market had anticipated a 0.26% inflation rate for the ninth month of this year.

September’s inflation was primarily explained by a 1.93% increase in education costs, a 0.49% rise in restaurant and hotel prices, a 0.29% increase in health costs, and a 0.24% rise in transportation prices.

Food prices, which have the highest weight in the inflation calculation, rose by 0.11% in September, according to DANE’s report. In contrast, recreation and cultural costs dropped by 0.26%.

Between January and September, Colombia accumulated a 4.58% inflation rate, compared to 8.01% in the same period in 2023.

Over the past 12 months through September, the country’s inflation rate stood at 5.81%, down from 10.99% in the same period last year, but still above the Central Bank’s long-term target of 3%.

The drop in inflation was a key factor behind the Central Bank’s decision to lower its benchmark interest rate by 50 basis points at the end of September, bringing it to 10.25%, with a cumulative reduction of 275 basis points since the current monetary easing cycle began in December. This move aims to support the country’s economic recovery.

In August, the Central Bank’s technical team slightly raised its inflation forecast for this year to 5.7%, up from a previous estimate of 5.5%. The bank also projects inflation to reach 3% by 2025.