Colombian inflation dropped to 7.36% YoY in March, its lowest since January 2022, providing a buffer for the finance ministry’s advocacy for quicker interest rate reductions to stimulate sluggish economic growth. Core inflation decelerated to 8.76%. Despite the central bank’s recent half-point interest rate cut to 12.5%, discussions persist around more aggressive easing, with Finance Minister Bonilla pushing for a full-point reduction. Colombia aims for a 3% inflation target, with a one pp margin of flexibility.