Colombia just hit a record minimum wage increase, and a top central banker is sounding the alarm: this is a serious inflation shock. Higher labor costs feeding into the system is exactly the kind of pressure that forces central banks to think about aggressive rate hikes. When you've got wage spirals pushing prices up across the economy, sitting still isn't really an option anymore. This kind of wage-driven inflation narrative is picking up steam in multiple economies, and it's the exact backdrop that keeps hawks on monetary policy committees awake at night. Worth tracking if you're thinking about how rate cycles typically play out—because where inflation fears go, capital flows usually follow.