The Cuban regime stated this Wednesday that the economic situation "continues to be very tense," but "prices continue to rise at a slower pace." "Monthly inflation showed a slight slowdown in April: from 4.07 in March to 2.13. Compared to March 2023, year-on-year inflation, which reached 46.4%, has been slowing down," said the newly appointed Minister of Economy and Planning, Joaquín Alonso Vázquez, during a Council of Ministers meeting.
The official clarified that this result does not mean that prices are decreasing: "They continue to grow, but at a slower rate." Optimistically, the regime assures that the economic situation in Cuba at the end of April remains very tense, although certain indicators such as the price of nickel, coal, mechanized tobacco, and medical services show "improvements."
However, the meeting did not address strategies to "continue slowing down" the inflation that affects Cuban families, whose minimum wage barely covers a carton of eggs or two kilograms of chicken.
Inflation Details for April
In the month analyzed by Cuban ministers, April, official inflation in Cuba exceeded 2%, particularly influenced by the price of food, reported Cuban economist Pedro Monreal in May based on government data published through the National Office of Statistics and Information (ONEI).
The expert explained in a thread on X that "despite the moderation of official monthly inflation in Cuba in April, it exceeded 2%, a level surpassed in 12 of the last 16 months." While the largest monthly price increase was recorded in "alcoholic beverages and tobacco" and "transportation," associated with government economic decisions, the most significant impact on overall inflation was concentrated in food (trade and gastronomy).
Monreal points out that during the first four months of the year, the increase in the price of pork had the greatest effect in the "food and non-alcoholic beverages" division, highlighting the failure of agricultural policy, which makes a crucial national protein source more expensive. In summary, it was food that explained nearly three-quarters of the price increase in April, the economist detailed.
Understanding Inflation in Cuba
Here are some frequently asked questions to help you better understand the current inflation situation in Cuba:
What is the current inflation rate in Cuba?
As of April 2023, the monthly inflation rate in Cuba was 2.13%, with a year-on-year rate of 46.4%.
Which sectors have seen the highest price increases?
The largest price increases have been recorded in "alcoholic beverages and tobacco" and "transportation," but the most significant impact on overall inflation has been in the food sector.
Why is food inflation particularly high in Cuba?
The high food inflation is mainly due to the increase in the price of pork, which highlights the failure of Cuba's agricultural policies and affects a crucial national protein source.