THE INFLATION

The inflation is rapid increase in the general price level, as measured by some broad index number of prices.

There is no one single, universally accepted cause of inflation, and the modern economic theory describes three types of inflation: (1) Cost-push inflation is due to wage increases that cause businesses to raise prices to cover higher labor costs, which leads to demand for still higher wages (the wage-price spiral), (2) Demand-pull inflation results from increasing consumer demand financed by easier availability of credit; (3) Monetary inflation caused by the expansion in money supply (due to printing of more money by a government to cover its deficits).

Colombia in the matter of inflation is different then the slowdown is felt this year in the Colombian economy, which could have a near zero growth, the outlook for 2010 looks better, but not come to represent a vigorous recovery.
The projected average growth is 2.29 percent, well below a 5 or 6 percent that economists consider necessary for Colombia aims to reduce poverty levels