Despite the difficult situation due to the break between the Ministry of Finance and the Central Bank, uncontrolled inflation is not foreseen
Experts rule out uncontrolled inflation, but foresee a rebound in 2026. Photo: iStock
TL;DR
- The increase in Colombia's minimum wage for 2026 is identified as a key internal driver of inflation, raising labor costs for businesses.
- Experts predict a relevant inflation rebound, particularly in food prices, influenced by converging costs, climate, and production decisions.
- The Central Bank's tightening monetary policy through interest rate hikes is seen as crucial in containing inflationary expectations.
- International factors, including geopolitical tensions in the Middle East, are increasing energy costs and affecting the price of crucial inputs like fertilizers.
- A stronger peso has provided some relief by reducing the cost of imported inputs and food, potentially offsetting some inflationary pressures.
- Declines in producer prices for some crops like rice and potatoes could lead to reduced planting areas, resulting in lower future supply and higher prices.
- Potential climate events, such as El Niño, and recent heavy rains add uncertainty to food production and inflation outlook.
- Rising costs for animal feed, like corn and soy, are also contributing to inflationary pressures on protein-based foods.