Inflation in Colombia soared to 13.1% in the last month of 2023, the highest rate since March 1999, according to the statistics agency.
Colombia’s average inflation rate was 10.15% last year and the highest of the 21st century, statistics agency DANE said in its monthly report.
Inflation since 1960
DANE did not immediately release the formal annual inflation rate.
Food price hikes hit poor hard
Last year’s price hike was mainly due to soaring food prices.
The price of rice, for example, was up 54% last year compared to 2022. The price of meat went up more than 20%.
Because the price hikes mainly affected basic food products, the wallet of Colombia’s poor was hit disproportionately hard, especially in the Caribbean region.
Poor people saw prices increase 14.92% last year compared to a 11.52% hike for the rich.
Government fails to curb hikes
In order to mitigate the impact of inflation of the poor, the government introduced energy subsidies, which allowed the inflation of energy bills to drop in November and December.
This had little effect on the general inflation increase in prices, which has been rising steadily since the beginning of 2021.
Countries all over the world have suffered extraordinary inflation as a consequence of the coronavirus pandemic and war in Europe.
Statistics provided by DANE on Mexico, Brazil and Chile showed that these countries passed the inflation peak earlier this year unlike Colombia.
Inflation rate in 2021 and 2022
Government plans to curb inflation
President Gustavo Petro said last month he would seek ways to boost domestic food production to curb the inflation of food prices, which has had a devastating effect on food security for the poor.
According to the president, an increase in domestic food production would allow the Colombian agriculture and food processing industries to effectively compete with food imports.
Petro blamed these food imports for the inflated cost of school lunches that are provided by authorities to mitigate hunger and malnutrition among children.
