In the annual review meeting of the Ministry of Finance and Prices, Cuba's Prime Minister, Manuel Marrero Cruz, voiced strong criticism towards ministry officials for their inability to control the ongoing rise in prices across the island and for not implementing effective solutions. Marrero expressed dissatisfaction with the leadership's performance and urged a thorough evaluation of the country's financial control systems.
"I urge us to scrutinize the methods we are employing, the control mechanisms we are implementing, and move to a new stage because the people are demanding it. The issue of prices remains unaddressed, continuing unchecked," Marrero stated.
Despite the Ministry of Finance and Prices claiming progress in the latter half of 2024, these improvements have not translated into tangible benefits for ordinary Cubans, who continue to endure escalating costs of essential goods and services.
Budget Transparency and Díaz-Canel's Involvement
The Cuban leader, Miguel Díaz-Canel, also attended the meeting, emphasizing the need for citizens to understand how the national budget is utilized, from local levels to the national stage.
"It is crucial for the people to be aware of how the country's budget is spent, as this enables them to exercise oversight over state budget usage. This transparency is one of the best ways to combat corruption," the leader insisted.
However, the disconnect between official statements and the harsh economic reality suggests a growing frustration among Cubans, who face a severe crisis with no clear solutions in sight.
Inflation and Economic Hardship in Cuba
As 2025 began, Cuba experienced a monthly inflation increase of 2.06%, leading to an annual rate of 27.7%. Economist Pedro Monreal analyzed recent data from the ONEI, highlighting a five-month consecutive rise in inflation, ranging between 20% and 32%, contradicting official claims of stability.
The cost of food remains the primary driver of inflation, underscoring the country's agricultural crisis. The "food and non-alcoholic beverages" category accounted for over 50% of the inflation surge in recent years. Additionally, tobacco and alcohol prices rose by 22.72%.
Monreal warns that massive poverty acts as a brake on inflation in Cuba, a consequence of declining wage significance in the economy. The precariousness and loss of purchasing power exacerbate the population's hardships.
Economic Planning and the Push for Innovation
During the Ministry of Economy and Planning's annual review, Díaz-Canel also criticized officials, stressing the importance of continuously comparing Cuba's economy with international contexts to develop more coherent strategies.
Among the priority strategies are digital transformation and utilizing Artificial Intelligence to optimize processes in a country facing a shrinking workforce. Promoting innovation, circular economy, and strengthening ties between state and non-state sectors are deemed essential.
In the economic and planning review, Marrero emphasized the need to control currency and the "partial dollarization" policy, highlighting the Cuban regime's priorities.
Understanding Cuba's Economic Challenges
What are the main factors driving inflation in Cuba?
The primary factor driving inflation in Cuba is the rising cost of food, exacerbated by the country's agricultural crisis. The category of "food and non-alcoholic beverages" has been a significant contributor to inflation, along with increases in tobacco and alcohol prices.
How is the Cuban government addressing the budget transparency issue?
Cuban leader Miguel Díaz-Canel emphasizes the importance of citizens understanding the national budget's allocation from local to national levels. This transparency is intended to enable public oversight and combat corruption.
What strategies are being proposed to improve Cuba's economy?
Proposed strategies include digital transformation, the use of Artificial Intelligence to optimize processes, promoting innovation, and strengthening the relationship between state and non-state sectors. These strategies aim to address the challenges posed by a declining workforce.