Colombia | Indexation: old habits, for the new year

Summary

In Colombia, the indexation percentage is high and is usually tied to two main indicators: the previous year's inflation and the increase in the minimum wage for the current year. Indexation through inflation would impact 30.5% of the basket and through the minimum wage 27.9% of the basket.

Key points

• Key points:
• In 2023, inflation was reduced considerably but is still high and will drive the indexation process this year along with the minimum wage increase for 2024.
• Despite indexation, inflation will continue to reduce and will close 2024 below 6%.

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