Colombia: Inflation ebbs in December from November
Latest reading: Consumer prices increased 5.1% in annual terms in December, following a 5.3% increase in the previous month. December’s reading slightly undershot market expectations.
Relative to the prior month’s figures, there were milder price pressures for housing and utilities (+4.8% in annual terms vs +5.3% in November) and food and non-alcoholic beverages (+5.1% vs +5.7% in November). In contrast, price pressures were higher for restaurants and hotels in December (+7.9% vs +7.6% in November).
Meanwhile, core consumer prices rose 5.6% on a year-on-year basis in December, following a 5.5% rise in the previous month.
Finally, consumer prices were up 0.26% in December in month-on-month terms, following a 0.07% rise in the prior month.
Panelist insight: Commenting on the outlook, Mariana Quinche Bustamante, analyst at BBVA, stated:
“Looking ahead, we expect the 23% minimum wage increase, far above what had been projected, to exert significant upward pressure on inflation in 2026, particularly via services, but also across other baskets through higher labor costs in labor-intensive sectors and subsequent price adjustments. […] Risks are not limited to minimum-wage-related indexation: if consumption remains dynamic in 2026, supported by higher household income, it could sustain demand pressures and, consequently, inflationary pressures. Added to this is the risk of increases in gas prices in a scenario of lower domestic supply.”