Inflation in Colombia: why owning real assets matters

Three years above target

The Banco de la República has an inflation target of 3%. According to DANE, the consumer price index (CPI) closed 2023 at 9.28%, 2024 at 5.20%, and 2025 at 5.10%. Inflation dropped significantly from its peak but didn’t return to target, and in August 2026 it rose again to 6.2% annually, according to BBVA Research analysis.

For a saver, this means money kept in cash or low-yield accounts loses purchasing power year after year.

Biggest increases

In 2024, the division that contributed most to inflation was lodging, water, electricity, and gas, with 2.13 percentage points, according to the DANE director. Education (10.62%) and restaurants and hotels (7.87%) were among the categories with the highest increases. In 2025, restaurants and hotels led again, with 7.91%.

Prices rising above average for hotels and lodging have two sides: it makes life more expensive for the payer but also reflects that lodging providers can adjust their rates.

Why are real assets associated with inflation?

A property or car that generates income produces earnings that, in many cases, can be adjusted over time: rent indexed to inflation or a nightly rate updated according to demand. Also, the value of real assets tends to move, in the long term, with the general prices in the economy.

But it’s not automatic. If the economy cools, tourist demand may fall; if costs rise faster than rates, margins shrink. Real assets also carry liquidity, maintenance, and regulatory risks.

Currency matters too

Many Colombian investors seek to protect their savings not only from inflation but also from the devaluation of the peso. In 2024, the TRM went from 3,822 to 4,409 pesos per dollar between the end of 2023 and the end of 2024. Holding part of your wealth in assets that generate income in dollars or euros is a way to diversify currency exposure, with its own exchange rate risks in both directions.

Practical ideas for your savings

• Keep a liquid emergency fund before investing in long-term assets.
• Compare the returns on your savings with the year's inflation, not just nominal numbers.
• Diversify across instruments, currencies, and asset types.
• Invest in real assets only with money you can keep for the intended term.

How CityFraction fits in

With fractions starting at 50 USD, you can have shares in accommodations and cars that generate income in Colombia, the United States, Spain, and Italy. The net rent is credited to your balance daily in proportion to your fractions. It’s a way to gradually add real assets and foreign currency to your portfolio, always understanding that returns are not guaranteed.

• See available assets
• Know the risks