The Cuban Minister of Economy and Planning, Joaquín Alonso Vázquez, has stated that inflation is decreasing in Cuba, though citizens have yet to see this reflected in market prices. During a session at the Council of Ministers on Monday, Alonso pointed out that the Consumer Price Index (CPI), a metric used to gauge inflation, is on the decline in the country.
According to the minister, this trend is a result of government actions, including inspections and price caps. Alonso noted that the reduction in inflation has been observed both monthly and annually. Additionally, there has been a decrease in the fiscal deficit and stabilization of certain monetary circulation indicators.
Alonso acknowledged that "the outcome is insufficient to lower prices," yet he maintains that it is a "positive sign in the country's macroeconomic restructuring." Cubans are left to anticipate the impact of the regime's measures, amidst an escalating crisis characterized by soaring food prices, frequent power outages, and a shortage of medications, among other issues.
In November, Alonso made a similar assertion, claiming that the economic situation in Cuba was beginning to improve, but warned that additional actions would be necessary within his sector. "We've experienced both negative and positive effects, allowing us to see the economy starting to get some relief. The fiscal deficit is improving—not as much as we hope, but it's decreasing; and certain macroeconomic indices are beginning to react, indicating progress," he remarked at the time.
While the minister speaks of improvements that remain invisible to the general populace, Cuban citizens grow increasingly frustrated. Basic goods like sugar are becoming scarce in markets. A pound of sugar, once a crucial product in the nation's economy, now costs around $4 on online platforms, and is largely imported.
Understanding Cuba's Economic Challenges
Why don't Cubans feel the effects of reduced inflation?
Despite reported decreases in inflation, the persistent high prices in markets prevent citizens from experiencing any real relief. This disparity highlights ongoing economic challenges in Cuba.
What government measures are being taken to control inflation in Cuba?
The Cuban government has implemented inspections and price caps as part of its strategy to manage inflation. These measures are intended to stabilize the economy, though their effectiveness remains to be seen.
How is the shortage of basic goods affecting Cuban citizens?
The scarcity of essential items, such as sugar, exacerbates the daily struggles of Cuban citizens. This shortage contributes to the overall economic hardship faced by the population.