Economics

Colombia Boosts Minimum Wage by 16%, Pressuring Central Bank

  • Raise sets monthly minumin wage at 1,160,000 pesos, or $242
  • Colombian inflation is at its fastest pace since 1999
Colombian workers select freshly cut roses to be packed for export.Photographer: Ivan Valencia/Bloomberg
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The government of President Gustavo Petro will raise Colombia’s minimum wage by 16% for next year, potentially putting extra pressure on the central bank to extend its steepest-ever series of interest rate rises.

The monthly wage will rise to 1,160,000 pesos or $242 from January, while a transportation subsidy equivalent to around $30 will go up by 20%, Petro told reporters. The government, business leaders, and unions agreed on the increase after almost one month of negotiations.