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Service-oriented and labor-intensive businesses may face higher operating costs due to the 23% minimum wage hike and its immediate impact on indexed service categories

"An excessive minimum salary increase is a threat on two fronts. It will impact inflation as suppliers face higher costs and also further push that domestic demand."

Colombian banks must now walk a tightrope between angering the outgoing president & international financial isolation.

Perishable food prices dropped 0.09%, fresh fruit climbed 2.38%, with grapes up 12.25%, plantains 3.72%, carrots 9.93%, oranges 6.12%.

The Colombian peso appreciated despite falling oil prices and the global stability of the US dollar.

Inflation fears kept Colombia's central bankers from reducing the key interest rate, amidst upward wage pressures.

IMF projects Colombia’s GDP growth at 2.5% in 2025; inflation easing to 4.5%, but deficit hits 7.1% and debt peaks at 62.3% by 2027.

Looking ahead, Bancolombia projects the USD/COP exchange rate to trade between $4,000 COP and $4,200 COP over the next month.

Bancolombia says the central bank’s caution reflects complex financing, global trade uncertainty, and US policy instability.

Breaking the fiscal rule without extraordinary cause may risk overspending, mounting debt, and a blow to Colombia’s economic credibility.