The Cuban government announced on Monday the implementation of price caps on six high-demand essential goods through a resolution published in the Official Gazette of Cuba. The Resolution 225/2024 from the Ministry of Finance and Prices establishes maximum retail prices for the following products:
Chicken pieces: 680 pesos per kilogram
Edible oils (excluding olive oil): 990 pesos per liter
Powdered milk: 1,675 pesos per kilogram
Pasta: 835 pesos per kilogram
Sausages: 1,045 pesos per kilogram
Powdered detergent: 630 pesos per kilogram
The resolution is presented as an effort to mitigate the impact of inflation on consumers. To achieve this, the government has eliminated the customs duty on imports of these products and set maximum retail prices. These prices take into account acquisition costs, marketing, merchants' profit, and sales tax. Additionally, a profit margin of up to 30% over costs and expenses is established, as long as the prices defined in the resolution's annex are not exceeded.
Minister of Finance and Prices Vladimir Regueiro Ale emphasized that this action responds to the current economic conditions of the country and is part of the government's efforts to protect the purchasing power of the population.
The provision also specifies that the Ministry of Finance and Prices, in coordination with the ministries of External Trade and Foreign Investment, and Domestic Trade, will periodically monitor the import price behavior of these goods to make necessary updates to the maximum retail prices and consider including other products in the list.
Understanding the New Price Caps in Cuba
Here are some frequently asked questions regarding the newly imposed price caps on essential goods in Cuba.
What are the new maximum retail prices for essential goods in Cuba?
The new maximum retail prices are as follows: Chicken pieces at 680 pesos per kilogram, edible oils (excluding olive oil) at 990 pesos per liter, powdered milk at 1,675 pesos per kilogram, pasta at 835 pesos per kilogram, sausages at 1,045 pesos per kilogram, and powdered detergent at 630 pesos per kilogram.
Why did the Cuban government impose these price caps?
The price caps have been imposed to mitigate the impact of inflation on consumers and protect the purchasing power of the population.
Which government bodies will monitor the implementation of these price caps?
The Ministry of Finance and Prices, in coordination with the ministries of External Trade and Foreign Investment, and Domestic Trade, will monitor the implementation and make necessary updates to the maximum retail prices.