Colombia confirmed a slight uptick in inflation in january of 2026. Although most forecasts from the economic sector had expected an even larger increase, the 0.25% rise compared with the December figure once again highlighted pressures on the cost of living and the complexities facing the national economy. The month of january is traditionally inflationary but this year, it also carried the threat of a 23% increase in the minimum wage—something the opposition and some spokespeople from the economic sector argue will be decisive in driving even higher inflation in the coming months.
According to the National Administrative Department of Statistics (DANE), the year-on-year variation of the Consumer Price Index (CPI) for January 2026 stood at 5.35%, a figure slightly higher than the December 2025 reading and above what had been recorded in January of the previous year.
The figure does indeed represent a rebound compared with the end of 2025, when annual CPI stood at 5.10%, cementing a start to the year with inflation still far from the Central Bank’s official target, which is around 3%. Inflation performance will form the basis for future monetary policy decisions by the issuing bank, which earlier this month raised interest rates by 100 basis points to 10.25%.
Colombia sees slight uptick in inflation in January 2026
As expected, 2026 began with an uptick in inflation in Colombia, although noticeably lower than what most experts from the economic and banking sectors had forecast. This evolution follows the controversy sparked by the decree that raised the minimum wage by 23% this year—something that puts upward pressure on this economic indicator, especially due to price indexation in key sectors of the economy that the country continues to experience.
According to the official report released yesterday, the CPI for January was 1.18%, bringing the national annual index to 5.35%, 0.25% higher than the figure that closed out 2025. With the data in hand, the transportation sector—where prices are reviewed upward every January—and food drove CPI growth last month.
Breaking down the data, six spending divisions were above the price range: Restaurants and hotels (2.94%); Transportation (2.14%); Alcoholic beverages and tobacco (1.79%); Food and non-alcoholic beverages (1.66%); Furniture and household goods (1.50%); and Health (1.21%).
Geographically, the cities where the increase in prices was most noticeable on an annual basis were Pereira, Bucaramanga, and Manizales.
#IPC | En enero de 2026, el Índice de Precios al Consumidor registró una variación anual del 5,35%, mientras que la variación mensual fue del 1,18%. pic.twitter.com/YAFWkcLcDG
— DANE Colombia (@DANE_Colombia) February 6, 2026
Expectations of potential interest rate hikes in a complex 2026
This figure, although moderate, confirms for the most critical voices fears of a return to an inflationary path, following a complicated 2025 that did not serve—unlike what happened in 2023 and 2024—to lower the CPI and bring it closer to 3%, the baseline used by the Central Bank. In this context, and after an initial rate increase of up to 100 basis points earlier this January, the economic sector is expressing concerns about further hikes in the coming months.
Although there is division within the Board of Directors of the issuing Central Bank, most of its members favor restoring higher rates in an attempt to contain inflation, in opposition to persistent requests from the government, which is even calling for cuts to facilitate access to credit and, therefore, economic growth.
Although it is still early to reach clearer conclusions, inflation’s behavior in the coming months will either support or undermine assessments of Colombia’s complex economic scenario, which this year will have to contend with a growing public deficit and a double electoral calendar: legislative elections in March and presidential elections in May and June, a reality that complicates forging agreements, including on economic matters.