Inflation in Colombia has risen again: according to DANE, in September 2026 it reached 6.29% over 12 months, the highest level since July 2024. The Banco de la República responded by raising its rate to 12.25%. Let me explain what is behind these numbers and what they mean for your wallet.
The September numbers
Prices rose 0.37% in the month and are up 5.74% so far in 2026. Annual inflation reached 6.29%, when the Banco de la República’s target is 3%. In other words, the cost of living is rising at more than double the pace the central bank considers healthy.
By city, Medellín had the highest annual inflation (7.04%) and Riohacha the lowest (4.53%). In Bogotá it was 6.06%.
What became more expensive
During the month, the biggest drivers were education (+1.43%) and food (+0.78%). Within food, tomatoes rose 10.47%, fresh vegetables 9.10% and potatoes 7.29%. Airfares soared 12.25%.
If you look at the last 12 months, the ranking is this:
| Division | Annual inflation |
|---|---|
| Restaurants and hotels | 9.44% |
| Health | 7.79% |
| Education | 7.49% |
| Food | 6.74% |
| Housing and utilities | 5.74% |
Source: DANE, CPI for September 2026.
The Banco de la República raises rates
On September 30, the Board of Directors raised the monetary policy rate by 25 basis points, to 12.25%. It was not a unanimous decision: four directors voted for the hike, two for holding the rate steady and one for a 50-point increase.
Why? The bank mentioned that the El Niño phenomenon may continue to put pressure on food prices and regulated services, and that analysts already expect inflation of 6.8% by December 2026. The Board’s next meeting is scheduled for October 30.
A high rate has two sides. If you save in pesos, a CDT (term deposit) or an interest-bearing account pays more. If you have variable-rate debts or plan to take out a loan, it costs you more.
What it means for your wallet
With inflation at 6.29%, one million pesos kept under the mattress buys today what about 941,000 bought a year ago. Idle money loses value, and that is the first thing you need to understand.
Here is what I would do in your place:
- Compare the real rate. If a savings product pays you less than 6% a year, you are effectively losing purchasing power.
- Don’t put everything in one basket. Keep one part in pesos with a good yield, another in a hard currency or in assets like gold. The proportion depends on your situation.
- If you want to learn trading, start on a demo account. Trading is not a way to quickly “beat inflation.” Without risk management, the market takes your money faster than any CPI. First read about the danger of leverage.
If you have already decided to trade forex, gold or indices, choose a large broker with years in the market. I work with FxPro, RoboForex and Tickmill, and to buy crypto with exchanges like Bybit or BingX. First make a small deposit and a small withdrawal to check that everything works from Colombia.
Where to trade
These are the brokers and exchanges I use that work with clients from Latin America. Always check that the service is available in your country and start small.
Risk warning: CFDs, Forex and crypto derivatives carry a high risk of losing money due to leverage. This article is not investment advice.
