Colombia inflation under control.

Consumer demand is fueling Colombia growth, and that has the Central Bank of the Republic of Colombia worried. Since 1995-when the rate of inflation grew 20.9 percent over 1994-Colombia has been engaged in a strenuous effort to curb inflation. Its success is measured by the fact that in only two years between 1995 and the present has the rate of inflation grown. And in those two years the actual increase in the rate of inflation is minimal.

In 2005, according to International Monetary Fund (IMF) statistics, the rate of inflation grew 5 percent over 2004. The IMF estimates that in 2006, the rate of inflation will grow 4.7 percent over 2005. And in 2007, the IMF says the increase in the rate of inflation will be 4.2 percent.

An October 9, 2006 Bloomberg News story reported on current inflation rates as follows. "Colombia's annual inflation rate fell in September to 4.6 percent, within the central bank's target range of 4 percent to 5 percent, from 4.7 percent in August. The rate has risen from a four-decade low of 3.9 percent in June." One of the central bank's board members mentioned in the Bloomberg story said that he felt confident inflation targets could be met without disturbing Colombia's solid growth, which the Bank estimates at 5.5 percent for 2006.

And, in a press release distributed on October 30, 2006, the IMF said that Colombia was to be commended for the skillful macroeconomic management of its economy. The IMF was optimistic, too, about the schedule of reforms Colombia has committed to. In the release, the IMF said the reforms would help to maintain macroeconomic growth and help alleviate poverty.