Nelson Bocanegra

BOGOTA, (Reuters) – Colombian inflation will see an additional increase in March. This would bring them close to triple the target rate of the central bank and force policymakers to raise borrowing costs further, according to a Reuters survey.

The median estimate of 17 analysts shows that consumer prices are expected to rise by 0.92% in March compared with 0.51% last year and 1.633% in February.

The estimates of analysts fluctuated between 0.7% and 1.0%.

The median inflation expectation will be met if inflation reaches 8.45% within the past 12 months. This is almost three times the Bank’s target rate at 3%.

Muni Jalil is the head economist in charge of BTG Pactual’s Andean region. He said, “We expect an inflation peak at 8.5% between March-April and then inflation should drop from there.”

These figures will be published by the government statistics office on Tuesday.

According to analysts, inflation was expected to rise by 6.40% at the closing of the year, compared with 5.50% at February’s end.

Also, expectations were up for next year to 3.80%, compared with 3.75% according to the last survey.

According to polls, inflation could cause central banks to raise borrowing costs by 5.50% this Thursday and up to 8.8% by the end.

Global supply-chain problems, Russia’s one-month-old invasion in Ukraine, and global supply-chain issues are fueling inflation. The minimum wage and increases in consumption are driving up the prices in Colombia.