Colombia Economists Raise 2.011 Inflation Forecast to 3.3%

Economists covering the Colombian economy raised their 2.011 inflation forecast for a second month as the expansion of South America's economy quickens.

Consumer prices will rise 3.3 percent this year, according to a central bank survey of 42 economists published today, up from a forecast of 3.2 percent in June and 3.1 percent in May.

Economists expect the central bank to raise the benchmark lending rate to 5 percent by year end from 4.25 percent now, according to the average estimate in the survey.

Colombia's economy will expand 5 percent to 6 percent this year, Finance Minister Juan Carlos Echeverry said today.

Consumer prices in June climbed 3.23 percent from the same month a year earlier, according to the statistics agency.

The central bank forecasts inflation to end the year at the mid- point between 2 percent and 4 percent.

The peso declined 0.6 percent to 1770.10 per dollar at from 1787.10 yesterday.