Inflation in Colombia again took momentum in August and reached a 5.1 % in annual termsaccording to the most recent report of the National Administrative Department of Statistics (DANE). The figure represents a rebound against 4.9 % registered in July, consolidating an upward trend that begins to generate concern in the economic sectors and the Bank of the Republic.
In the monthly analysis, the cost of living rose a 0,19 %and the accumulated of the year is already in 4,2 %which could complicate the monetary policy scene in the remainder of 2025.
The acceleration of inflation was mainly marked by Non -alcoholic food and drinkswhich registered a variation of the 0,45 % During August. They also highlighted the increases in alcoholic beverages and tobacco, with a variation of the 0,59 %highlighting increases in products such as beer, wine, brandy, and different types of imported spirits, as well as in cigarettes.
Another sector that pressed the price index was restaurants and hotelswhich presented a variation of the 0,49 %. In this area, products such as sodasodas in supermarkets, Meals served at table and hot drinks such as the traditional Colombian red and coffee with milk.
Although the projections of the Bank of the Republic They estimate that inflation will close the year around 4,7 %the recent bullish streak has generated warnings from the sender. According to the Central Bank, factors such as the increase in Minimum wage between 2024 and 2025 and the increase in some international prices “Such as coffee,” they have influenced the recent stagnation of the disinflation process.
This scenario complicates the decision about a possible Reduction in interest ratesa measure that the National Government has promoted to boost consumption and relieve credit, but that the issuer insists on “prudence.”
Inflation will also be key to defining the adjustment of the minimum salary of 2026although the government has already made clear its position: the increases will remain Well above the consumer price index.
This was stated by the Minister of Finance, Germán Ávilawho reiterated that the Executive will maintain its policy of real increases as a tool for reduce povertyarguing that these increases They do not impact negatively Neither in inflation nor in employment.
With four months ahead and an economy that seeks to recover dynamism, the evolution of inflation will be decisive not only for the decisions of the Bank of the Republic, but also for the salary and fiscal adjustments that are coming.
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