Interannual inflation in Cuba's formal market stood at 33.17% in March

Interannual inflation in Cuba's formal market stood at 33.17% in March, an increase compared to the 32.08% registered in February.

The National Statistics and Information Office (GOOD) of Cuba reported on Saturday that in the third month of the year the largest year-on-year increase by category was experienced by Transportation, with an increase of 47.95%. That month the Cuban government increased the price of fuel by 400%.

They were followed by the Restaurants and hotels sectors with 41.01%, Food and non-alcoholic beverages with 36.80%, and Miscellaneous goods and services with 23.66%.

In general, all categories experiencedyear-on-year increases, most of them with double-digit rates, detailed the state entity.

Despite this increase, the March rate shows an improvement compared to 54.82% in January.

The agency noted that its measurements do not include the informal market, which is larger and less regulated, and where prices tend to be higher due to widespread shortages on the island.

This informal sector is especially inflationary, amid the lack of official regulation.

Cuba faces a deep economic crisis exacerbated by the pandemic, United States sanctions and errors in the management of its macroeconomic policy.

The economy is characterized by awidespread shortage, partial dollarization and a marked increase in prices.

In 2021, inflation in regulated trade reached close to 70%, while in the informal market it is estimated to be approximately 500%.

In March, the Cuban regime insisted that the uncontrolled inflation ravaging the country has not been caused by its failed shock economic policies, but rather induced by the CIA in collaboration with independent media.

“What do you know about the Induced Inflation Operation carried out by the CIA and carried out by El Toque? Inflation in Cuba is being generated, induced, with criminal manipulation of the exchange rate,” stated the official space of Cuban Television "Razones de Cuba."

In January, several Cuban economists agreed that the new measures announced by the regime to "get the country's economy back on track" will generate a new wave of inflation that immediately began to be perceived in some areas, such as the increase in the price of foreign currency in the informal market. .

Interviewed byReuters, said that the measures, which include price and tax increases, as well as cuts in subsidies, could reveal inflation of between 400 and 500%, considered economist Omar Everleny.

Already in March, the rise in fuel prices triggered transportation prices, which ended up leading to an increase in inflation.