At the congress of economics students, the Minister of Finance, <a href="https://time.news/colombia-inflation-in-march-2024-was-7-36-2024-04-07-170654/" title="Colombia inflation in March 2024 was 7.36%
– 2024-04-07 17:06:54″>Ricardo Bonilla, addressed the upcoming discussion on the increase in the minimum wage in Colombia, scheduled for this year. As he explained, the process will be carried out in accordance with the law, but he hinted that the increase would be a single digit, unlike the double-digit increases of recent years, in response to the behavior of inflation.
Bonilla explained that, according to current regulations, the minimum wage must be adjusted based on the inflation caused, to which a productivity index is added. “The law says that the minimum wage in principle must be adjusted against caused inflation. So, depending on where inflation ends, the minimum wage must be adjusted to that. Plus a productivity index. Therefore, it is always estimated that the minimum wage rises somewhat more than inflation,” he stated.
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In relation to interest rates, the minister urged the Bank of the Republic to make a more significant cut, arguing that inflation has decreased by 722 points, reaching 5.81%, the Government’s objective. However, he warned that this decline has not been enough due to current high interest rates.
Bonilla criticized the Central Bank’s position, pointing out that it has not adequately contributed to economic reactivation. “The intervention rate has only dropped 300 points. In such a way that we have 444 points of real contractive rate that does not help the reactivation of the Colombian economy. We effectively hope that the bank proceeds to accelerate the reduction of the rate and that it reduces this real rate and contributes to the reactivation,” he emphasized.
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According to the minister’s projections, the minimum wage increase for next year is expected to be between 5% and 6%, a notable change from previous increases of 10.03% in 2022, 16% in 2023 and 12% in 2024.