in June Inflation in Colombia reached 12.13 percentcompleting three consecutive months of decline, after registering a maximum of 13.34 percent last March.

For the Minister of Finance, Ricardo Bonilla, inflation has not been reduced at the desired speedbecause the prices of food and other products are falling, but gasoline continues to rise.

(Also read: Inflation continued to drop in June, but remains above 12% per year)

«unfortunately we have to adjust gas prices and that means that we were not able to lower inflation at the rate we would like to,” said Minister Bonilla.

Since October 2022, the price of gasoline has risen, on average, 3,789 pesos and, according to the minister, there are still several more months of increases to make the gallon cost the same as in the international market.

Currently, the average cost of gasoline is 12,964 pesos, on average, and should reach 15,500 pesos in the coming months. Once this price is reached, the increases in the cost of diesel will begin.

Despite these increases, the Minister of Finance estimates that In December inflation in Colombia is 9.5 percentthat is, that it returns to one digit after a year and a half.

(Also read: These are the reasons that prevent the cost of living in Colombia from falling faster)

Minister of Finance Ricardo Bonilla.

With inflation going down, the official also expects that The Banco de la República begins to lower its interest rates between September and October of this year.

Estimates that the year will end with an interest rate of 11 percentthey are currently at 13.25 percent after the Issuer’s board of directors left the stable at the June meeting.