Colombia faces rising food inflation, consumer credit shifts, and energy security reforms
Food prices in Colombia are putting upward pressure on inflation. Monthly food inflation reached 0.49% in June, up from a decline of 0.08% a year earlier, and the annual inflation rate is projected to rise from 6.05% to 6.68%. The biggest contributors are perishable items such as fresh fruit, potatoes, onions and tomatoes, while processed meats are expected to see only moderate price increases. Core inflation, measured without food and regulated goods, is expected to climb to around 6.02%, its highest level since May 2024.
The June "prima" bonus continues to boost household consumption, but many workers are using it more strategically, preserving liquidity for the second half of the year. Only about 35.5% of adults have access to formal credit products. Point‑of‑sale financing options are expanding, allowing retailers to increase sales by 25%‑40% and raise average transaction values by up to 50% in sectors such as technology, tourism, education, health and home improvement.
The National Association of Power Generators (ANDEG) has outlined a plan to safeguard Colombia’s energy security. It calls for renewed oil and gas exploration, including fracking and offshore projects, and for strengthening gas import infrastructure. A projected energy deficit of 2,000‑4,000 GWh per year for 2029‑2030 could be mitigated by a new reliability‑charge auction to add 1,500‑2,500 MW of capacity, with a focus on thermal generation. The association also urges faster licensing, better coordination among agencies, and reactivation of strategic national projects.
A government proposal to amend Decree 1070 of 2015 would lower private‑security service fees for residential complexes, schools, small businesses and certain public entities in lower‑income municipalities. The tariff would be reduced from 9.77 to 8.98 minimum wages, with the cost split into direct labor, administrative/supervision expenses and mandatory life‑insurance coverage, aiming to ease the financial burden on households in strata 1‑3.