(Bloomberg) -- Colombian inflation accelerated to a fresh 23-year high last month, increasing pressure on the central bank to extend a record monetary policy tightening cycle.
Consumer prices rose 12.22% in October from a year earlier, the statistics agency said Saturday. That compares to the 12.17% median estimate of economists surveyed by Bloomberg. Prices rose 0.72% from the previous month.
Inflation accelerated, led by food prices, household items, restaurants and hotels. Core inflation that excludes the most volatile items of the consumer basket rose 9.15% from a year earlier, the highest since at least 2009.
The central bank targets annual inflation of 3%, plus or minus one percentage point.
The central banks of Brazil and Chile have both ended aggressive tightening cycles, and Peru will likely do so by year-end, with consumer prices finally c in all three economies.
By contrast, inflation in Colombia shows no signs of slowing, growth remains strong and the peso is trading at record lows, raising the prospect of pass-through pressures on prices.
The central bank last month raised its key interest rate by one percentage point to 11%, the highest level in over two decades. Economists surveyed by the central bank see a half-point hike at the bank’s next meeting in December.
Finance Minister Jose Antonio Ocampo, who has a seat on the central bank’s board, has said that most of the inflation pressure comes from supply factors.
Still, the economy is growing above its potential and is expected to expand this year by about 8%, the fastest among regional peers, according to central bank estimates.