Andean Group - March 2011 (ISSN 1741-4466)

Oil: As a result of the continuing crisis in North-African and Middle Eastern oil producing countries and the subsequent increase in the price of oil, the Colombian government had authorised an increase of COL$210 (US$0.11) per litre of oil at the pump. The increase went into effect on 1 March and is intended to address (partially) the current deficit of COL$270bn (US$141.41m) in the fund for the stabilisation of oil prices (FEPC), which, amongst others, was caused by the destruction wreaked by the intense winter.

Inflation: According to Colombia's national statistics institute (Dane), the index of consumer price inflation in February was 0.60%, 0.23% lower than in the same period of 2010 (0.83%). Education (4.17%), food (0.66%) and healthcare (0.60%) registered the highest increases. Year-on-year, inflation was 3.17%. The monthly results surprised private consultants who, according to a recent poll by the central bank, on average expected inflation of 0.97% in February (with a base of 0.58% and a ceiling of 1.17%).