Inflation in Colombia saw a slight decrease in March 2025, falling to an annualized rate of 5.09%. According to data released yesterday, this marks a 0.19 percentage point drop from the previous month, despite rising prices in household-related services.
In particular, the sharp increase in energy bills was addressed at yesterday night’s Council of Ministers meeting, which, as usual, was chaired by President Gustavo Petro.
This latest figure brings Colombia’s annual CPI down to levels not seen since October 2021, just before the onset of the inflationary surge.
March inflation in Colombia decreases slightly
On Monday, April 7, Colombia’s official inflation data for March was released. According to the National Administrative Department of Statistics (DANE), prices in the country showed a slight deceleration, bringing the annual Consumer Price Index (CPI) down to 5.09%.
This marks a decrease compared to February, although the inflation rate remains higher than what Colombia needs to support stronger economic growth. Still, the country appears to be back on a downward trend after four months of stagnant prices.
Month-over-month, inflation in March rose by just 0.52%, placing the annual rate well below the 7.36% recorded in March of last year.
The sectors that contributed most to annual inflation were restaurants and hotels (7.34%), education (7.27%), and housing-related costs such as water, electricity, and gas (6.29%).
The latter sector, in particular, remains politically contentious. According to sources from the presidency, tonight’s Council of Ministers meeting—led by President Gustavo Petro—will prioritize addressing the rising costs of public utilities.
Awaiting the effects of Trump’s tariffs and the global trade war
The March inflation data was released on the same day that stock markets around the world plunged, reflecting heightened nervousness and uncertainty amid the crisis triggered by President Trump’s tariffs.
Although in the U.S., the fall in the end was less than what was indicated at the beginning of the day, both Asian and European markets experienced a third day of sharp falls, while from Europe voices are coming from Europe seeking negotiation with the U.S.
Thus, the coming weeks will be key to see how the economy, inflation and interest rates, which both President Petro in Colombia and Trump in the U.S. claim are still too high, will finally evolve.
Related: Colombia’s Petro Claims Energy Companies Abuse Service Fees.