The Cuban regime's chancellor, Bruno Rodríguez Parilla, celebrated the decrease in inflation in Cuba according to official figures and attributed it to the Government's plan.
“May's year-on-year inflation rate in Cuba was 16.43%, a figure significantly better than the previous year,” Rodríguez wrote on X, drawing on data from the National Office of Statistics and Information (ONEI).
Despite the disastrous economic management of the Cuban government that has plunged the country into what many scholars refer to as a "policrisis," government officials, as if living in a parallel reality, have the audacity to boast about their performance.
"The figures achieved are the result of the implementation of the Government Program to correct distortions and reinvigorate the national economy," assured the regime's chancellor.
Inflation in Cuba
The National Office of Statistics and Information (ONEI) reported this Monday that the year-on-year inflation rate in the formal Cuban market stood at 16.43% in May, a figure that Rodríguez Parilla proudly highlights, representing the lowest level recorded since the onset of the pandemic.
This figure, although significantly lower than the 31.11% reported in May 2024 –according to official statistics– is still considered high and heavily impacts vulnerable sectors such as workers, retirees, and low-income families.
On a monthly basis, the consumer price index (CPI) showed an increase of 0.83%, while the year-to-date cumulative variation reached 7.45%.
The ONEI also highlighted that more than 90% of Cubans' income is allocated to cover the products and services included in the basic basket, which serves as the basis for calculating the CPI, although it actually does not meet fundamental needs.
By sector, the most significant increases were recorded in Alcoholic Beverages and Tobacco, with an alarming year-on-year rise of 119.79%.
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 closed 2021 at 77%, then decreased to 39.07% in 2022, 31.34% in 2023, and 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 general index, reflecting not only their weight in daily consumption but also the instability of their availability and prices in the formal and informal markets.
However, the public perception is that the actual inflation is much higher than what the authorities acknowledge.
Frequently Asked Questions about the Economic Situation in Cuba and Inflation
Is inflation in Cuba really decreasing?
Although the Cuban government claims that inflation has decreased, experts question this assertion. According to Pedro Monreal, a prominent Cuban economist, the country is facing a situation of stagflation, which means a combination of economic stagnation and high inflation, contradicting the official narrative.
What is stagflation and how does it affect Cuba?
Stagflation is an economic phenomenon that combines high inflation with economic stagnation. In Cuba, this translates into a high year-on-year inflation rate and economic contraction, complicating citizens' access to basic goods and services and eroding their quality of life.
Why is the economic policy of the Cuban regime criticized?
The economic policy of the Cuban regime has resulted in a significant deterioration of public services and a loss of purchasing power for workers. This policy is characterized by harsh fiscal austerity and disproportionate investment in tourism, exacerbating social inequalities and worsening the living conditions of the Cuban population.
How does inflation affect basic commodities in Cuba?
Inflation has significantly raised the prices of basic goods. For instance, essential foods such as rice, chicken eggs, and pork have experienced a considerable increase in their prices, reflecting the instability of their availability and cost in both the formal and informal markets.
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