During the Annual Balance Meeting of the Ministry of Finance and Prices, the Cuban Prime Minister, Manuel Marrero Cruz, reprimanded sector officials for the ongoing rise in prices on the island and the lack of effective solutions.
Marrero expressed his discontent with the authorities' management and called for a thorough review of the financial control mechanisms in the country.
"I invite you to review the methods we are using, the control mechanisms we are establishing, and to move on to another stage because the people are asking us for it. The issue of prices is not being resolved; it continues with total impunity," declared Marrero.
Despite the Ministry of Finance and Prices claiming to have made progress in the second half of 2024, the results are not reflected in the daily reality of Cubans, who continue to face rising costs of essential products and services.
Díaz-Canel and budget control
The Cuban leader, Miguel Díaz-Canel, was also present at the meeting. He emphasized the importance of the population knowing how the country's budget is utilized, from local to national levels.
"It is a goal for the people to know how the country's budget is being used, because that way they could exercise control over the use of the state budget. This is one of the best ways to combat corruption," stated the leader.
However, expert critiques and the economic reality of the island suggest that the official discourse is disconnected from the daily lives of Cubans, who continue to face an acute crisis with no concrete solutions in sight.
Inflation Crisis and Poverty in Cuba
The inflation in Cuba began 2025 with a monthly increase of 2.06%, reaching an annualized rate of 27.7%.
The economist Pedro Monreal analyzed the statistics from the ONEI this week and explained how inflation has risen for five consecutive months, ranging between 20% and 32%, which contradicts the official narrative of stability.
The price of food is the biggest driver of inflation, reflecting the country’s agricultural crisis. The category "food and non-alcoholic beverages" accounted for more than 50% of the inflation increase in recent years. Additionally, the price of tobacco and alcoholic beverages rose by 22.72%.
Monreal warns that the inflationary brake in Cuba is the massive poverty, resulting from the decline in wage value in the economy. Precariousness and the loss of purchasing power exacerbate the crisis faced by the population.
The Ministry of Economy and Planning also had a balance
In the balance meeting of the Ministry of Economy and Planning, Miguel Díaz-Canel also reprimanded officials and emphasized the need for a continuous comparative analysis of the Cuban economy within the international context to design more coherent strategies.
Among the strategies he considers to be a priority are digital transformation and the use of Artificial Intelligence to optimize processes in a country with a declining workforce. He believes it is important to promote innovation, a circular economy, and strengthen the relationships between the state and non-state sectors.
In the annual report of Economy and Planning, Marrero emphasized the importance of strengthening the foreign exchange control and the "partial dollarization" policy, clearly indicating the priority of the Cuban regime.
Frequently Asked Questions about the Economic Situation and Inflation in Cuba
Why did Prime Minister Marrero Cruz reprimand the officials in the economic sector in Cuba?
The Prime Minister Manuel Marrero Cruz reprimanded officials in the economic sector due to the ongoing rise in prices on the island and the lack of effective solutions to address this situation. During an annual review meeting of the Ministry of Finance and Prices, he expressed his dissatisfaction with the management of the authorities and urged a reassessment of the control methods and mechanisms.
What is the current situation of inflation in Cuba according to experts?
Inflation in Cuba began in 2025 with a monthly increase of 2.06%, reaching an annualized rate of 27.7%. Experts such as economist Pedro Monreal have pointed out that inflation has risen for five consecutive months, ranging between 20% and 32%, which contradicts the official narrative of stability and reflects a persistent economic crisis.
What measures does the Cuban government propose to address the economic crisis?
The Cuban government has proposed to strengthen domestic production, modernize the business system, and promote digital transformation. A "partial dollarization" of the economy is also planned to attract more foreign currency, although this measure has been criticized for exacerbating social inequality. So far, these measures have not managed to resolve the structural problems of the economy or significantly improve the daily lives of Cubans.
How does inflation affect the daily lives of Cubans?
Inflation severely impacts the daily lives of Cubans by increasing the cost of food and basic services. The category "food and non-alcoholic beverages" has been a major driver of inflation, accounting for more than 50% of the inflationary rise. This makes many essential products unaffordable for the population, exacerbating precariousness and the loss of purchasing power.
What criticisms does the Cuban government face regarding its handling of the economy?
The Cuban government is facing criticism for its disconnect from the country's economic reality and for its lack of effective solutions to the crisis. Experts such as Pedro Monreal criticize that the government discourse ignores the seriousness of the economic situation, characterized by stagflation, high inflation, and economic stagnation. Furthermore, the measures adopted, such as the elimination of subsidies and disproportionate investment in tourism, have been seen as ineffective and detrimental to the well-being of the population.
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