Colombia's firms face stubborn cost pressures amid easing inflation and record bank profits

Official CPI data in Colombia shows a slowdown in inflation, but many companies – especially small and medium‑sized enterprises – continue to experience high operating costs. The headline index does not capture sector‑specific price changes for inputs such as imported raw materials, transportation, energy, commercial rent, technology licences and payroll. Consequently, a modest decline in the national inflation rate does not automatically translate into lower expenses for businesses, whose cost structures are influenced by labour‑related factors like minimum‑wage hikes and benefits.

At the same time, Colombia’s banking sector posted a sharp profit surge in 2025. The thirty banks collectively earned about 14.2 trillion pesos (roughly US$4 billion), a 71 % rise over the previous year, driven by a sharp fall in overdue loans (down 16.4 % in real terms) and stronger provisioning coverage (142 %). Investment‑portfolio earnings also improved. Four banks posted losses, and an emergency wealth tax introduced in early 2026 trimmed earnings, with Bancolombia’s profit falling 25.9 % YoY in the first quarter.