Although the Cuban regime claims that inflation has reached its lowest level in years, the everyday reality on the streets of the island presents a very different picture: entire families are struggling to survive in the face of unreachable prices, insufficient wages, and an economy that suffocates the ordinary citizen.
The National Office of Statistics and Information (ONEI) reported on Saturday that the year-on-year inflation rate in the formal Cuban market reached 16.43% in May, marking the lowest level recorded since the onset of the pandemic.
This figure, although markedly lower than the 31.11% reported in May 2024 –according to official statistics– is still considered high and significantly impacts vulnerable sectors such as workers, retirees, and low-income families.
On a monthly basis, the consumer price index (CPI) increased by 0.83%, while the cumulative variation for the year so far reached 7.45%.
The ONEI also highlighted that over 90% of Cubans' income is used to cover the products and services included in the basic basket, which serves as the basis for calculating the CPI, although in reality, it does not meet fundamental needs.
By sector, the most pronounced increases were recorded in Alcoholic Beverages and Tobacco, with an alarming 119.79% year-on-year.
They were followed by Restaurants and Hotels (23.62%), Miscellaneous Goods and Services (16.89%), Education (16.83%), and Housing-related Services (15.35%).
Only four categories showed increases below 10%: Recreation and culture (7.94%), Transportation (5.54%), Health (0.83%), and Communications (0.46%).
According to official statistics, inflation has had a devastating cumulative effect: since 2020, prices have tripled, and the Consumer Price Index (CPI) closed 2021 at 77%, then dropped to 39.07% in 2022, to 31.34% in 2023, and to 24.88% in 2024.
Among the products that most contributed to the increase in monthly prices in the "Food and non-alcoholic beverages" category are rice, chicken eggs, and pork.
These foods, essential in the diet of the average Cuban, had a significant impact on the variation of the overall index, reflecting not only their weight in daily consumption but also the instability of their availability and price in the formal and informal markets.
However, citizens perceive that the actual inflation is much higher than that acknowledged by the authorities.
This imbalance is largely due to the fact that the official index fails to adequately capture the behavior of the informal market, which is more dynamic and well-supplied than the state system, where prices soar out of control and without regulation.
Cuba is experiencing one of its worst economic crises in decades, worsened by the collapse of the energy system, widespread shortages of food, medicine, and fuel, the dollarization of the economy, and prolonged blackouts that impact daily life.
The crisis, which has been ongoing for more than five years, has intensified due to a combination of factors: the COVID-19 pandemic, the tightening of sanctions imposed by the United States under the Trump Administration, and, especially, the failed economic and monetary policies of the regime itself, although the latter are barely recognized by the government.
This context has fueled social unrest, manifested in unprecedented protests and a massive wave of migration that shows no signs of stopping, reflecting the deep discontent of an increasingly desperate population.
Frequently Asked Questions about Inflation and the Economic Situation in Cuba
Is the inflation figure reported by the Cuban government real?
Although the Cuban government claims that inflation has decreased to 16.43%, many experts and citizens believe that this figure does not reflect the country's economic reality. The perception is that the actual inflation is much higher, particularly due to the dynamics of the informal market, which are not adequately captured by official statistics.
How does inflation affect Cuban citizens?
Inflation severely impacts the daily lives of Cubans, as more than 90% of their income is allocated to basic products and services, which fail to meet their fundamental needs. Increases in essential items such as food and services have worsened the quality of life, leading to increased poverty and precariousness.
Which sectors have experienced the highest price increases in Cuba?
The largest price increases have been recorded in alcoholic beverages and tobacco, with an alarming 119.79% year-on-year. Other affected sectors include restaurants and hotels, various goods and services, education, and housing services, reflecting the wide impact of inflation across different areas of consumption.
What are the causes of persistent inflation in Cuba?
Inflation in Cuba is the result of a combination of internal and external factors, including failed economic policies, lack of control in the informal market, shortages of basic goods, and the impact of international sanctions. This context has worsened the economic crisis, leading to growing social discontent.
What measures has the Cuban government implemented to control inflation?
The Cuban government has attempted to implement measures such as inspections and price controls to manage inflation. However, these efforts have been insufficient to effectively reduce prices, and discontent continues to grow among the population, which faces daily economic challenges.
Filed under:
