We estimate food, oil and energy price effects on inflation in a small open economy model for Colombia. Such an economy exports and imports commodities and has an inflation targeter central bank who follows an optimal interest rate rule. We found evidence of small effects of commodiTY prices shocks on headline inflation once the reaction of monetary authoriTY has been taken into account. Thus, our interpreta¬tion is that monetary authoriTY has faced rightly the shocks to commodiTY prices. Inflation expectations are the main determinant of inflation during the inflation targeting regime. CommodiTY prices movements are to a great extent included in the information set to form expectations.
