Sign Up Log in

    Colombia’s Consumer Price Index meets expectations at 1.18% for the month

    by VT Markets
    /
    Feb 7, 2026
    The Colombia Consumer Price Index (CPI) for January increased by 1.18%, matching economists’ expectations. This indicates that inflation is stable as the country’s economy changes. A steady CPI suggests that inflation is under control, which may lead to stable interest rates. This information could affect the monetary policy decisions of Colombia’s Central Bank in the future.

    Market Reactions and Global Conditions

    Market responses will likely consider how CPI numbers relate to broader economic trends and global market conditions. This is especially important as discussions continue about changes in monetary policies around the world. Back in February 2025, January’s inflation data matched predictions, which helped stabilize market expectations. We’re experiencing a similar situation today, with the January 2026 inflation rate at 0.95%, also closely aligning with forecasts. This trend of predictable inflation suggests lower volatility for assets connected to the Colombian peso. The ongoing trend of controlled inflation eases pressure on the Banco de la República to make sudden monetary policy changes. With the current key interest rate at 7.50%, traders should expect a clear and gradual approach to any future rate cuts. This stability supports a calm currency environment in the near future.

    Strategies for Derivative Traders

    For derivative traders, the current environment favors strategies that thrive on low volatility. The USD/COP exchange rate has stayed within a tight range of 3,900 to 4,100 over the last quarter, making option selling to collect premiums more appealing than buying them. Strategies like short straddles or strangles could take advantage of the market’s expectation for continued stability. The stable outlook also makes carry trades more attractive. Since Colombian interest rates are much higher than those in the United States, using forward contracts to buy the peso against the dollar allows traders to benefit from this yield difference. The low risk of sudden currency shifts makes holding these positions more appealing. Create your live VT Markets account and start trading now.

    here to set up a live account on VT Markets now

    In This Article

    see more

    Back To Top
    server
    Click Click Click Click Click
    Follow us on

    Hello there 👋

    How can I help you?

    Chat with our team instantly

    Live Chat

    Start a live conversation through...

    • Telegram
      hold On hold
    • Coming Soon...

    Hello there 👋

    How can I help you?

    telegram

    Scan the QR code with your smartphone to start a chat with us, or click here.

    Don’t have the Telegram App or Desktop installed? Use Web Telegram instead.

    QR code