The Colombian central bank\'s July survey of inflation expectations showed a increase from the previous month with analysts on average projecting prices to increase 3.3% for the year, within the central bank\'s target range of 2% to 4%. The poll of 39 analysts, released Monday by the central bank, showed inflation expectations rising from the previous month, when the outlook stood at 3.21% for the year. The poll also projected that inflation for July should come in at 0.12% on month. Inflation in June accelerated to 0.32%, above economists\' expectations. The central bank started to increase interest rates earlier this year, but the minutes from the last monetary policy meeting showed that at least one of the bank\'s seven-member was against increasing the rate. Italy sells 6.75b euros of treasury bills as borrowing costs climb Italy sold 6.75 billion euros ($9.4 billion) of treasury bills in its first auction since borrowing costs began soaring amid contagion from the Greek debt crisis. The Treasury in Rome said it sold the one-year bills, meeting its target, at an average yield of 3.67 percent. That compares with a yield of 2.147 percent when similar securities were last sold on June 10. Demand for the debt was 1.55 times the amount sold, compared with 1.71 times at the June auction. Italy sold the bills as European policy makers meeting in Brussels on Tuesday struggled to fix Greece’s finances and stop contagion from the debt crisis. The yield investors demand to hold Italian 10-year bonds instead of German bunds fell 17 basis points after the sale to 312 basis points. Portugal slump to deepen as austerity bites Portugal’s economy will shrink more than forecast this year and contract in 2012 as the austerity measures that were required for an international bailout take hold, the country’s central bank said. Gross domestic product will shrink 2 percent this year and 1.8 percent in 2012 after expanding 1.3 percent in 2010, the Bank of Portugal said in its summer economic bulletin. In March, before Portugal sought a rescue, the estimates were a 1.4 percent contraction this year and 0.3 percent growth in 2012. The government of Prime Minister Pedro Passos Coelho is implementing spending cuts and tax increases that were part of a 78 billion-euro ($109 billion) financial aid package from the European Union and the International Monetary Fund.