economy
Neither war nor climate, 88% of inflation hike in Colombia is due to minimum wage and consumption
The Colombian economy is going through a moment of tension that is felt directly in the pocket due to the rise in prices so far in 2026. According to the most recent report by Corficolombiana, called *Interest Rates on the Rise: The Novel Continues*, the monthly inflation for April registered a variation of 0.78%, making it the third highest for this month in the last 15 years.
TL;DR
- Colombia's April inflation was 0.78% monthly, leading to an annual rate of 5.68%.
- 88% of the inflation increase from January to April 2026 is attributed to indexing and demand pressures, largely driven by a 23% minimum wage hike.
- External factors like the US-Iran conflict are minor contributors to inflation, according to Corficolombiana.
- Services not including rent, heavily reliant on labor, saw inflation rise from 6.7% to 8.6%.
- The Banco de la República maintained its interest rate at 11.25% in April but is divided on future monetary policy.
- Corficolombiana anticipates a potential interest rate hike to 12.25% or 13% in June.
- A real interest rate of 6% is needed to effectively lower inflation, a level not seen in a decade.