Colombia Inflation Rises to Four-Month High 5.1% in August

Colombia's annual inflation rate rose to 5.10% in August 2025, up from 4.90% in July, marking the fastest pace in four months and exceeding the central bank’s 3% target. Key contributors to this increase included higher prices for food, alcohol and tobacco, restaurants and hotels, health services, and education, while housing and transportation costs rose more slowly or eased slightly. On a monthly basis, consumer prices increased by 0.19%, in line with market expectations. This persistent inflationary pressure challenges the central bank’s monetary policy, keeping the benchmark interest rate at 9.25% amid fiscal uncertainty. The inflation surge has strained household budgets and complicated business pricing and investment decisions. Analysts forecast the annual inflation rate to remain elevated around 5% for the year, highlighting the need for ongoing monitoring and agile economic planning.