The Cuban Minister of Economy and Planning, Joaquín Alonso Vázquez, stated that inflation has decreased in Cuba, but Cubans are not noticing this in market prices.
In an appearance this Monday at the Council of Ministers, Alonso specified that the behavior of the Consumer Price Index (CPI), an indicator used to measure inflation, is decreasing in Cuba.
The minister affirms that the behavior of this indicator is due to the measures being implemented by the government. Among these, he mentioned inspections and price caps.
El descenso de la inflación ha sido mensual e interanual. También hubo una reducción del déficit fiscal y se estabilizaron ciertos indicadores de la circulación monetaria.
He acknowledged that "the result is insufficient for prices to be reduced," but still believes that "it is a positive symptom in the macroeconomic management" of the country.
Cubans will have to continue waiting for the regime's measures to produce results, as the crisis worsens due to high food prices, blackouts, and shortages of medicine, among other issues.
In November, Alonso stated something similar. He assured that the economic situation in Cuba is starting to improve, but cautioned that new measures will be needed in his sector.
"We have seen negative and positive effects that allow us to observe how the Cuban economy is starting to breathe. The fiscal deficit is improving; not as much as we would like, but it is decreasing. Certain macroeconomic indicators are beginning to respond, giving us a glimpse that we are making progress," he commented at that time.
Mientras el ministro anuncia mejorías que nadie nota, los cubanos se van desesperando. Ya no encuentran ni sugar in the marketsA pound of this staple product, which was a crucial part of the country's economy, costs about 4 dollars on online platforms and is generally imported.
Frequently Asked Questions about Inflation and the Economy in Cuba
Has inflation really decreased in Cuba?
Cuba's Minister of Economy, Joaquín Alonso Vázquez, stated that inflation has decreased. However, this decline is not reflected in market prices, which creates skepticism among the population. Year-on-year inflation remains high.
What measures has the Cuban government implemented to reduce inflation?
The Cuban government has implemented measures such as inspections and price caps to control inflation. These actions aim to stabilize certain economic indicators. However, the effectiveness of these measures is questioned by Cubans who do not see improvements in their purchasing power.
Why do Cubans not feel the reduction in inflation in their daily lives?
Despite the supposed reduction in inflation, the prices of basic goods remain high. The disconnect between official statistics and everyday reality is evident, particularly in light of the scarcity of products, the high cost of food, prolonged power outages, and the lack of medications.
What do experts think about the statements made by Cuba's Minister of Economy?
Experts such as economist Pedro Monreal criticize the minister's statements as "delusional." Monreal argues that the Cuban economy continues to be stifled by ineffective economic policies. He indicates that the supposed improvement relies on wage compression, which worsens the living standards of Cubans, as they face greater difficulties in accessing basic goods.
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