The Colombian economy is going through one of the best economic times of the past 50 years. Colombia grows strong. In 2007, the economy grew 7.52%, investments in the country are multiplied, direct foreign investment in Colombia is growing and domestic demand is getting stronger. But in the midst of this period of splendor of the Colombian economy, inflation appears as a large black cloud that threatens to spoil this good time. Inflation in Colombia comes rising and worries its authorities faced several tradeoffs to resolve this problem. In the month of may, the index of prices to the consumer (IPC) grew a 0.93%, the highest rate for the same month since 1999. Already in the first five months of the year, the retailer in Colombia inflation 5.12 per cent and is 6.39% in the past 12 months. It is worth remembering that the Central Bank of Colombia, has an inflation target of 4% with a range of half a percentage point in both directions.

Clearly, the rate of inflation month to month are going away from the proposed goal. It is for this reason that, motivated by the evolution observed in prices, a week ago, the Central Bank of Colombia had left its interest rate unchanged. It is located at 9.75%. According to the Central Bank: the Board stressed that inflation and inflation expectations are kept at levels exceeding their goals, which happens also with several core inflation indicators. But not only worries the Central Bank current inflation data, but also the strong dynamic that is showing the financing of consumption, which is an issue that the Monetary Authority follows closely due to the impact that has this phenomenon in domestic demand (and consequently, in inflationary pressures). This situation of higher inflationary pressures and a credit that encourages consumption, generates the feeling that a period of rising rates may be imminent.