Breaking: Colombia Announces 23% Minimum Wage Hike for 2026 as Inflation Outlook Tightens
President Gustavo Petro has unveiled a 23 percent rise in the monthly minimum wage, with the new baseline set at 1,750,905 pesos per month. An additional transportation allowance of 249,095 pesos brings the total to 2,000,000 pesos monthly. The measure takes effect on January 1, 2026.
The announcement arrives as Colombians monitor the country’s inflation trajectory, with the December 2025 CPI release still pending. Rents, public utilities, adn tolls are closely tied to the CPI’s movement, shaping household budgets ahead of the new year.
IPC
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PORTFOLIO
Inflation Watch: CPI Trends And december 2025 Release
According to the National Department of Statistics, CPI tracks the price changes of goods and services in the typical household shopping basket. The basket is defined through the National Household Budget Survey, conducted every decade.
November 2025 posted a CPI increase of 5.30 percent, slightly higher than the year-ago figure by about 0.10 percentage points. The CPI remains a key determinant for service and housing costs in 2026.
Dane has scheduled the December 2025 CPI balance and figures for release on January 8, providing the final data point for the year.
The measure applies to drinks with high alcohol content.
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Global Outlook: OECD Signals Colombia Among Inflation Leaders For 2025–26
In its latest Economic Outlook,the Organization for Economic Cooperation and Advancement highlights Colombia as one of the economies with elevated inflation expectations for 2025,ranking behind only Turkey and ahead of several peers.
For 2026, the OECD projects Colombia at about 4.0 percent inflation, placing it behind Turkey’s steep pace but above Hungary. The 2025 snapshot points to Colombia around 4.7 percent, with Turkey at 31.4 percent and Hungary near 4.9 percent.
These projections underscore how the CPI baseline influences public services and everyday costs, including housing, health, and other essentials.
| Item | 2025/Forecast | Source |
|---|---|---|
| Minimum wage (monthly, after wage‑law hike) | 2,000,000 pesos (total, January 1, 2026) | Official government announcement |
| November 2025 CPI | 5.30% year over year | Dane |
| December 2025 CPI forecast | To be released January 8,2026 | Dane |
| OECD 2025 inflation ranking (Colombia) | 3rd among high-inflation economies (approx. 4.7%) | OECD Economic Outlook |
| OECD 2026 inflation forecast (Colombia) | About 4.0% | OECD Economic Outlook |
all figures are contingent on official releases and OECD estimates, and they may be revised as authorities update data.
Why this Matters Now
The wage increase raises purchasing power for workers but also intersects with inflation trends that shape the cost of living across cities. Policymakers and households will be watching how the December CPI—and subsequent adjustments to rents and services—play out in early 2026.
Two questions for readers: How will the 23 percent wage rise affect your monthly budget in 2026? Do you expect the December CPI data to change the outlook for housing and essential services?
Share your thoughts in the comments and tell us how inflation trends will influence your plans this year.
Disclaimer: Inflation and wage data are subject to official updates from Dane and international outlooks.For precise figures, refer to the Dane releases and OECD reports.
