Annual Report 2023


Modern Food Retail

Food retail slowed compared to 2022, against higher food inflation than retail sales growth. As a result, the real growth in household food expenditure entered negative territory, after being almost zero in 2022.

Despite the reduction in inflation, the entry into force of the new “Impuestos saludables” (“health tax”) in November 2023 led to a significant rise in prices for various food products. This tax applies to products that may be harmful to health, either because they contain very high levels of sugar, salt or fat, or because they are processed or ultra-processed, and is part of the Colombian tax reform. It is expected to have an impact on inflation in the coming years.

Ara employee stacking fresh fruit (photo)

During the year, consumer surveys showed that around half of those surveyed cited rising food prices as their biggest concern for the coming months.

COLOMBIA - Food retail sales index & food inflation

Current prices

Colombia – Food retail sales index & food inflation (bar chart)

The minimum wage in Colombia at the end of 2023 was 1,160,000 Colombian pesos, equivalent to around 270 euros. For 2024, the monthly minimum wage saw an increase of 12.1% to 1,300,000 Colombian pesos. It should be noted that, according to the National Administrative Department of Statistics (DANE), informal employment stands at 55%, which means that workers may earn below the minimum wage.

The economic outlook continues to be one of moderate growth for 2024. There are fears concerning inflation, as food prices could come under renewed pressure due to the El Niño weather phenomenon and, no less important, the effect of automatic price adjustments at the beginning of each year.

Sources: Banco de Portugal Economic Bulletins; Portuguese Ministry of Finance; Portuguese Statistics Office (INE); National Bank of Poland Economic Bulletins; Central Statistical Office (GUS); Banco de la República (Colombian Central Bank); Colombia National Administrative Department of Statistics (DANE); Fedesarrollo; Nielsen and BMI; Future Minds, Fitch BMI, Mordor Intelligience, iAlimentar, America Retail, Valora Analitik.

Note: All macroeconomic data presented in this subchapter are based on the latest available information at the closing date of this report.

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