Colombia: Inflation remains above target in January
Latest reading: Consumer prices increased 5.4% on a year-on-year basis in January, following a 5.1% rise in the previous month and remaining well above the Central Bank’s 2.0–4.0% target range.
Relative to the previous month’s data, price pressures were higher for restaurants and hotels in January (+9.0% on a year-on-year basis vs +7.9% in December). In contrast, price pressures reduced for housing and utilities in January (+4.6% vs +4.8% in December). Finally, the change in food and non-alcoholic beverages prices was the same as in the prior month (+5.1% in January and December).
Meanwhile, core consumer prices were up 5.9% on a year-on-year basis in January, following a 5.6% rise in the previous month.
Finally, consumer prices were up 1.18% in January in month-on-month terms, following a 0.26% increase in the prior month.
Panelist insight: Commenting on the outlook, Santiago Tellez, analyst at Goldman Sachs, stated:
“Year-on-year headline inflation is likely to remain on a mostly upward trajectory during 2026. […] The significant inflation shock implied by a 23% minimum wage hike will continue to boost the prices of ex-rent services, especially through April. […] On the slightly more constructive side, we anticipate some progress from the lagged impact of the COP strengthening, lower domestic fuel tariffs, and favorable base effects from the 2025 rollout of health-related taxes and coffee prices.”