Significant minimum wage increase did not boost household spending in January, which remains stalled

Household spending increased by 2.5% in January. Photo: iStock

Significant minimum wage increase did not boost household spending in January, which remains stalled

TL;DR

  • Household spending in Colombia grew by 2.5% in January 2026, a slowdown compared to previous periods.
  • This growth is the weakest January in the history of the data, despite a 23% increase in the minimum wage.
  • Reasons for the slowdown include inflation, rising interest rates, and reduced disposable income after high December spending.
  • Income per occupied person saw a decrease of -4.3% annually.
  • Consumer confidence dropped slightly due to a more pessimistic view of current economic conditions.
  • Positive drivers for spending include the travel season and back-to-school purchases, but overall deceleration is clear.