This past Friday, Cuban state television took aim at the high prices found in small and medium-sized enterprises (SMEs), conveniently overlooking the fact that dollar stores across various provinces charge even more than these businesses. In a report by spokesperson Talía González on so-called "excessive pricing," the state journalist claimed that most essential goods in the national currency are found in non-state sector outlets but fail to adhere to "established" prices. She described enforcing the regime's pricing as a "challenge."
"Often, the approach is to either withdraw the product or sell it discreetly. Inspectors frequently arrive to find the product not listed on the information boards, yet it is being sold. New methods are emerging to circumvent legal responsibilities regarding price violations," stated an interviewed inspector.
González, while justifying the shortage crisis by blaming the U.S. economic embargo, urged that the "fight" against high prices should be a "daily practice," without acknowledging the State's role in the economic mismanagement in Cuba.
A self-employed individual, also interviewed by the regime's reporter, explained that product prices rise due to having to acquire them through various channels, as the wholesale company responsible for supplying them offers nothing. "The situation with wholesale markets for private markets is really tough. I have a connection with a non-agricultural cooperative, and although the market was created to offer lower prices, it practically offers nothing," he remarked about the Mercabal Wholesale Food Market, which was established in 2018 to "satisfy" the private sector's product demand.
According to data provided by González, the average salary in Cuba as of January is 5,827 pesos per month, while a piece of liver in an SME can cost up to 1,300 CUP. The situation is dire for retirees, who receive an average pension of 2,188 pesos, and "new retirees," 3,163, in a context where inflation increases by 2.06% monthly, equating to an annualized rate of 27.7%.
Despite low salaries and pensions, the regime has opened dollar stores nationwide as part of a partial dollarization process of the economy. The government has stated that accounts in Freely Convertible Currency (MLC) will remain in the island's banks, while defending the dollar's presence in the economy.
As it wages a campaign against SMEs, the regime is opening these stores where only those who receive dollars from family members can shop. Yet, it promotes these stores as "accessible" for the general population, despite the high dollar prices making them out of reach for a large portion of Cubans.
Understanding Cuba's Economic Challenges
Why are SMEs in Cuba being criticized for high prices?
Cuban state television has criticized SMEs for high prices, claiming they do not comply with government-set pricing, despite essential goods being mainly found in these non-state sector outlets.
What is the impact of dollar stores on the Cuban economy?
Dollar stores have been opened across Cuba as part of a partial dollarization effort, but they are only accessible to those with access to foreign currency, creating a disparity as they are out of reach for most Cubans due to high prices.
How are retirees affected by the current economic situation in Cuba?
Retirees in Cuba face a critical situation as their pensions, averaging between 2,188 and 3,163 pesos, struggle to keep pace with high inflation rates, which increase the cost of living significantly.