Prices in Cuba officially rose 39% in 2022, a figure that reflects the great deterioration of the economy of the population and affects above all food, with an increase of 62.9%, according to a publication this Wednesday the National Office of Information and Statistics (Onei).
The data is much better than that of the previous year, when December closed with a 77.3% rise in the consumer price index (CPI) dragged down by transport, which grew 188%, and housing, 153%. That year, food prices increased by 114%. That does not hide the fact that Cubans have spent twice as much as a year ago on food, accumulating increases. In addition, the authorities themselves are aware that the official calculation is far from being true, since it is almost essential for the majority of citizens to resort to the informal market to find food.
The rise in prices this month is more moderate than last, although not insignificant. Prices rose 3.7% in December, somewhat less than in November, when they increased 4.1%.
The increases in very essential products in the daily life of the average Cuban stand out, such as red beans (13%), toilet paper (10.5%) and black beans (10%). Sweets and flours increase more than 8%. However, tomatoes (-19.8%), which in some state markets have capped their prices, and peppers (-5.7) fell.
The increases in very essential products in the daily life of the average Cuban stand out, such as red beans (13%), toilet paper (10.5%) and black beans (10%).
By sector, food and non-alcoholic beverages once again gained prominence, which rose 5.6% this December. Here it is also noticeable, once again, how expensive protein of animal origin is. Pork (8%), mutton and ham (more than 6%) and eggs (5.4%), but also rice increased. The basic accompaniment to dishes in family meals continues to grow and in December its price increased by 3.7%.
Restaurants and hotels is again the division that closely follows food in its escalation. This December their prices increased by 4.22% and throughout the year they accumulate 55.6%. The rise is led by the price of snacks (7.8% rise), followed by breakfast (4.6%), take-away food (3.5%) or soft drinks (2.5%).
The third section that most affects the price variation is that of goods and services, although its rise is discreet (2.6%) and education slips ahead, whose prices increased by 3.9% in December, and furniture and household items (2.7%). However, the podium wins it, due to how much it impacts daily life, the growth in the cost of toilet paper, dye (6.1%), shampoo or perfume (both around 3.8%).
The only sector whose prices fell was that of alcoholic beverages and tobacco, whose prices fell by -0.12%, undoubtedly dragged down by the drop in strong cigarettes
The only sector whose prices fell was that of alcoholic beverages and tobacco, whose prices fell by -0.12%, undoubtedly dragged down by the drop in strong cigarettes (-0.8%). However, throughout the year the price variation is greater than 25%, remaining globally as the third group of products due to higher prices in all of 2022.
Other increases with less impact are transport (0.3%, although 13.5% annually), housing (1.2%, but 13.2% in 2022), recreation and culture (0.34%) and clothing and footwear (0.41%). And much more insignificant is the rise in health and communications prices, which, without going down, barely rose 0.09% and 0.06% respectively.
“The data support the difficulty of the economic scenario, in which price rises are combined with lower economic growth, which points to a complex situation of stagflation (acceleration of inflation and stagnation of production), whose solution can be much more complex”, point in your blog Cubaeconomy the Cuban expert based in Spain Elías Amor, who adds that the island’s authorities do not seem to be doing much to control the situation.
The American economist Steve Hanke, who makes balances taking into account the informal economy, placed inflation in 2022 in Cuba at 140%, more than three times higher than that provided by the Government with official prices. Although since the beginning of the year he reports increases of around 60%, again very high, but considerably lower. In addition, the expert also accounted for the devaluation of the peso, which since January 2022 has fallen 57.65% against the dollar.
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