Court Suspends Colombia’s Record 23% Minimum Wage Increase (2)

A Colombian high court suspended the record 23% minimum wage increase which spooked the central bank and caused inflation expectations to soar.

The Council of State gave the government eight days to issue a new decree. This must be accompanied by a detailed economic justification that takes into account the central bank’s inflation target and productivity growth, among other factors, the court ruled.

Presidential frontrunner Iván Cepeda, an ally of leftist President Gustavo Petro, called for street protests. Petro’s ministers denounced the decision, and said they will defend the original increase.

“This is bad new for Colombian workers,” said ...