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The data from the National Office of Statistics and Information (ONEI) shows an annual inflation rate of 24.88% in 2024, the lowest rate in years. However, this decline has not alleviated the economic impact on Cuban households, especially in key sectors such as food, transportation, and essential services.
Cubadebate reported that the highest year-on-year increase was recorded in the categories of alcoholic beverages and tobacco (67.24%), followed by restaurants and hotels (29.04%), food and non-alcoholic beverages (28.15%), and transportation (24.58%).
These increases directly impact families, whose purchasing power has been severely reduced in recent years. Thousands of Cubans lack access to basic necessities such as milk, eggs, sugar, coffee, and even bread.
Other sectors, such as health (0.85%) and communications (0.67%), showed more modest increases, although not without challenges.
The shortage of basic goods, medications, and fuel, along with prolonged blackouts, worsens an economic crisis that not only impacts people's wallets but also the quality of life for Cubans.
The black market and real inflation
The popular perception is that the real inflation greatly exceeds official figures, largely due to the strong dependence on the black market, which is more dynamic and better stocked than the regulated one, but has significantly higher prices.
Furthermore, the Consumer Price Index (CPI), which is used to measure inflation, is based on data from 2010, raising concerns about its relevance in the current context.
The dollarization of essential sectors and the inability to control shortages are increasing economic pressure on Cuban households.
The regime established price caps on certain products, but these measures are often not enforced. The prices of food and fuel in the black market continue to fluctuate uncontrollably.
The government assures that the year-on-year inflation is decreasing
The Minister of Economy and Planning, Joaquín Alonso Vázquez, stated in December that the decrease in inflation is a "positive symptom" in the macroeconomic management.
He referred to a supposed stabilization of certain indicators, such as monetary circulation and the fiscal deficit, which he believes is the result of the measures implemented by the government, including inspections and price caps. However, he admitted that “the results are insufficient for prices to decrease.”
Meanwhile, Cubans are facing a discouraging landscape, marked by high living costs, blackouts, and limited access to basic services, amidst a structural crisis that seems far from being resolved.
Frequently Asked Questions about Inflation and the Economic Situation in Cuba
How has inflation affected staple goods in Cuba?
Inflation has caused a significant increase in the prices of basic products such as pork, rice, and beans, making them almost unattainable for many Cuban families. The rise in prices has severely reduced the purchasing power of Cubans, forcing them to struggle to obtain essential food items.
What are the sectors most affected by inflation in Cuba?
The sectors most affected by inflation in Cuba include food and non-alcoholic beverages, which have seen a price increase of 28.15%, and transportation, with a rise of 24.58%. Furthermore, inflation has severely impacted access to basic goods and essential services, affecting the quality of life for Cubans.
What measures has the Cuban government taken to control inflation?
The Cuban government has implemented measures such as setting price caps and conducting inspections to control inflation. However, these measures have not been fully effective as prices remain high and the population does not perceive significant improvements in their purchasing power.
Why is the effectiveness of the Cuban government's economic policies being questioned?
The economic policies of the Cuban government are questioned due to their ineffectiveness in addressing structural issues such as inflation and shortages. Experts like Pedro Monreal criticize the disconnect between official statements and the economic reality, noting that the economy remains stifled by persistent stagflation and ineffective economic policy.
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