The shock between inflation and economic growth is changing how households consume
The mass consumption market reached $105.9 trillion last year. Photo: iStock
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.