The shock between inflation and economic growth is changing how households consume

The mass consumption market reached $105.9 trillion last year. Photo: iStock

The shock between inflation and economic growth is changing how households consume

TL;DR

  • Household consumption in Colombia is shifting towards goods due to differing inflation rates between services and goods.
  • Service inflation is high (around 9%), while goods inflation remains low (around 3%), making services relatively more expensive.
  • Increased purchasing power, stemming from wage growth higher than goods inflation, is strengthening demand for goods.
  • Household financial stability, marked by low debt-to-income ratios and stable savings, supports increased spending and access to credit for durable goods.
  • The appreciation of the exchange rate has reduced the cost of imported goods, further benefiting consumption of categories like technology and vehicles.
  • The retail sector saw 10.9% annual growth in February 2026, significantly outpacing overall economic growth (1.6%).
  • Spending on goods is expected to remain a key economic driver as long as current macroeconomic conditions persist.