Price adjustment in Latin America is moving in a very different direction, and this contrast allows us to better understand why some countries are already showing signs of subduing inflation, while others are still mired in persistent increases. In this uneven map, Colombia once again appears among the most uneven countries, just as the economic debate revolves around purchasing power and the decisions to be made for the coming year.
The new Danish figures for October were not noticed. The Consumer Price Index ended at 5.51%, this rate marking the highest point of the year and extending the upward trend that began in mid-2025. It reached 4.82% in June, 4.90% in July, 5.10% in August, and 5.18% in September. The index gained momentum with each passing month, but fell well short of Republic Bank’s annual target of 3%.
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Analysts say the problem does not come down to any particular crash, but rather to self-feeding dynamics. César Pavon, head of economic research at Coffi Colombia, said in the newspaper. republic Part of this phenomenon is a response to “the inertial effects of inflation itself and its indexation, as evident in services (rent, outdoor dining), etc.” For him, this action will be a central element of the “next minimum wage debate,” which historically reflects the tension between past inflation, future expectations, and productive capacity.
The debate is already marked by subtleties, with the government’s proposal envisaging a rise in inflation of nearly 11%, five percentage points above the recent rate. For some economists like Luis Alberto Villamarín, the risks are clear. “Increasing the minimum wage above the inflation rate will continue the upward trend in this figure. It will also lead to layoffs, which will reduce the production capacity of companies,” he said in the same newspaper, adding that authorities should consult with industry before announcing any increases.
Other experts, such as Carlos Sepulveda, director of SCORE University del Rosario, focus on monetary policy. In his view, the country is “in the process of stabilizing towards the inflation target, which has not yet been achieved,” which suggests that the Bank of the Republic remains cautious and may consider pausing rate cuts or raising rates modestly to avoid unanchoring expectations.
Regional comparisons will help determine the size of the panorama as Colombia tries to get back on track. Venezuela remains the most dire situation. Although recent official data is not available, trade and economic statistics put the inflation rate at 172% as of April. The International Monetary Fund predicts that growth could end this year at 269.9% and rise to 682.1% in 2026. Over the same period, the organization predicts that Venezuela’s economy will grow by just 0.5% in 2025 and decline by 3.0% in 2026.
Argentina ranks second in the region with 31.8%, followed by Bolivia with 22.2%, a decrease of 1.1 points from the previous month. There, the monthly change in CPI was 0.8%, and the cumulative inflation rate in 2025 reached 19.2%.
The following is a group of countries with more moderate but still high pressure compared to the target: Brazil (5.17%), Uruguay (4.32%), Paraguay (4.10%). Other bands with more stable indicators include Guyana (3.8%), Mexico (3.57%) and Chile (3.4%). Rounding out the list are Peru and Ecuador, showing near-normal behavior at 1.4% and 1.24%, respectively.
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