Colombia’s inflation continued to decrease in June, reaching an annual rate of 4.82%. Despite global economic and political instability, Colombia is slowly stabilizing price growth, though it remains well above its long-term target of 3%.
To find lower inflation data in Colombia, one would have to go back to October 2021, when the annual inflation rate that month was 4.58%—just before the inflationary surge that peaked during 2022 and 2023.
Colombia moderates inflation in June: 4.82%
Colombia’s annual inflation continued its downward trend in June, settling at 4.82%—a 0.23 percentage point decrease from May’s figure—the National Administrative Department of Statistics (DANE) reported this Monday.
In the first six months of 2025, the Consumer Price Index (CPI) rose by 3.74%, with a monthly variation of 0.10%. “June’s inflation rate was 4.82%, that is, 2.36 percentage points lower than the rate reported in the same period last year, when it stood at 7.18%,” DANE released in a statement.
According to the public agency, this decline is primarily explained by the performance of the Restaurants and hotels sector (0.42%) and Health (0.36%), while Food and non-alcoholic beverages recorded a decrease of -0.08%.
Conversely, Education (7.57%) and Health (7.16%) were the sectors with the highest annual increases.
Six months behind the government’s forecasts, inflation is finally below 5%
At the start of 2024, the Colombian government set an inflation target of 5% for December of that year. However, as months passed—despite sustained declines—this goal was quickly abandoned. Colombia ended 2024 with inflation at 5.2%.
Despite prolonged price deceleration, Colombia’s economy remains stable amid an unstable dollar exchange rate, U.S. tariff threats, and downgrades by international rating agencies due to fiscal constraints. The country maintains moderate growth with unemployment rates below 9%.
As President Gustavo Petro’s government approaches its final year in office (ending August 2026), the challenge remains achieving the ultimate inflation target of 3%.
This outcome would enable further interest rate cuts and, consequently, greater credit access for individuals and businesses—which the government claims would stimulate consumption and economic growth.
In its latest review, Colombia’s central bank left interest rates unchanged at 9.25% due to global economic uncertainty, pending improved inflation data.