Production costs in Colombia's industry fell 2.63% at the end of 2025 compared to 2024, according to the Producer Price Index (IPP) report from Dane. The Ministry of Hacienda highlighted this drop as a sign of relief for inflation, driven by moderation in external raw material prices and imported goods. The mining and quarrying sector led with a -19.91% decline.
The National Administrative Department of Statistics (Dane) released the Producer Price Index (IPP) report, which tracks producer revenues in the initial commercialization channel, from farms, mines, or factories. For the full year 2025, Colombia's national IPP recorded an annual variation of -2.63%, contrasting with 2024 trends and confirming cost moderation in the economy, as stated by the Ministry of Hacienda and Public Credit.
The sector with the variation below the average was mining and quarrying, at -19.91%. Agriculture, livestock, and fishing showed -1.69%, while manufacturing industries saw a slight rise of 1.03%. In December 2025, the IPP dropped -0.39% from November, with declines in agriculture and fishing (-1.77%) and mining (-1.63%), and an increase in manufacturing (0.30%).
The Ministry of Hacienda stressed that this decline does not signal weakening domestic production but rather developments in external raw materials markets. Goods for the internal market remained stable, near zero, without sharp drops or significant inflationary pressures. Moreover, prices of imported goods fell notably, particularly for fuels, petroleum derivatives, and industrial inputs, thereby lowering production costs for Colombian firms and aiding overall inflation moderation.
