Price growth sped up in August, with headline inflation at 6.24% versus the 6.12% economist median from a Bloomberg survey. On a monthly basis, the index increased 0.29%. A core reading that omits more volatile categories climbed to 6.27%. Services did the heavy lifting, with restaurants and hotels, health care, and education leading the gains, according to the national statistics agency's Monday report.
Inflation now sits at a two-year high and, more specifically, the highest since 2024. That puts it further away from the central bank's 3% goal, which allows for a one percentage point margin on either side. In July, policymakers held the benchmark rate at 12%, a decision that surprised many economists and traders who had anticipated a hike.
President Abelardo de la Espriella, who took office last month, has promised austerity and a shift back toward fiscal discipline. Later this month, Finance Minister Miguel Gómez will face his debut vote on monetary policy at the central bank, while pressing legislators to trim next year's public outlays. Central bank polling shows economists expect year-end inflation at 6.6%, easing to 5.09% in 2027, a path that would keep it beyond the bank's target band for the seventh consecutive year.
When headlines change, steady investing and simple habits pay off; get the free Always Be Buying E-Book
Prices are rising faster than expected and the next rate call arrives later this month, with new fiscal plans also taking shape. If you live or operate in Colombia, that combo affects what you pay for services and the broader path of inflation to watch.
