Inflation rate in Colombia
Do you know what inflation is truly about? Does the word inflation sound familiar to you? If not, let`s talk about the inflation rate in Colombia. It should be explained that inflation is all about the rise of services, goods and food stuffs astronomically. It should be interesting to state that the opposite of inflation is deflation which is when the prices decrease. Therefore, experts in the field of economy have mentioned that the inflation rate in Colombia is expected to be constant or remain 3.8% for the year 2020.
What does inflation mean to the ordinary people on the streets, the businesspeople, retailers buying and selling things in Colombia? It can be said that it means a lot but inflation around the world and most especially in Colombia could be difficult to explain or comprehend. According to the website called trading economics, https//tradingeconomics.com/Colombia/inflation-cpi, it was mentioned that inflation in Colombia dropped from 3.84% in November 2019 to 3.80% in December 2019. For people who really want to know why this drop in inflation is fundamental in terms of the prices of housing, utilities (3.46% vs 3.61% in November) , food and non-alcoholic beverages and tobacco (5.80% vs 6.43%) should take a look at the website mentioned above. In the same vein, inflation has been steady for clothing, footwear (0.69%) and education (5.75%).
Furthermore, talking about the rate of inflation in Colombia, some people believe that the numbers on the paper do not correspond with the reality on the ground. It is true that the prices of homes are decreasing in Colombia but prices of other sectors such as transportation and food production/ cost of food are increasing. These contrasting realities on the ground in contrast to what is mentioned on the TV – Radio make the rate of inflation difficult to determine. However, it is believed that the true colour of inflation in Colombia will be known and manifested in the purchasing power and the quality of life of people in general.
To be honest, the quality of life of an average Colombian has improved based on what has been observed through the lens of an average shopper. Many supermarkets and shopping malls have been constructed across Colombia. The likes of “Ara, D – 1, Carulla, Justo Bueno, Jumbo, Exito, Homecenter, Easy “etc are springing up in every nooks and crannies of Colombia and they have gradually changed the shopping mentalities of people in Colombia. As a matter of fact, the last five years have changed considerably in terms of the way people in Colombians buy and sell things.
In conclusion, inflation rate in Colombia seems to be on the downward slope but some businesspeople still believe it is still not getting better. Nonetheless, reports on paper points towards a better state of economy with stable inflation. The question is who do we need to believe, the business enterprises or the analysis of inflation on papers?
Written by:
Austin Fabumuyi