The Council of the Administration of the municipality of Tunas established a cap on the prices of agricultural products that are sold in state markets and at the territory’s own expense, with the purpose of stopping a continuous increase in recent times.
The purpose of this measure is to lower the prices of different products, mainly root vegetables, vegetables and grains, and in turn stop the galloping inflation that affects families from Las Tunas, according to a report of the Cuban News Agency (ACN).
?They entered into force on #LasTunas #Cuba #prices maximum retailers for a group of agricultural products, food and services approved last week by the Municipal Administration Council ?https://t.co/FHrFYmXOuW #economy With @finanzasprecios pic.twitter.com/TM9Jh6ZoqC
– Newspaper26 (@26deLasTunas) May 8, 2023
People interviewed in that city assured that thanks to this decision they were able to purchase products such as rice and chickpeas with an average reduction of around 30 Cuban pesos (CUP) compared to the usual prices in establishments before the measure was implemented.
They also explained that the amount of the reduction is not so significant, but they valued that this allows them to know that at least “How good to know actions materialize to stop inflation“.
“From now on, let the inspectors work,” said Cristina Sarría, one of those interviewed by the ACN in La Algarroba square, located in the main population settlement of the province.
The publication specifies, the resolution of the Council of the Administration of the municipality also includes the regulation of prices for processed foods that are sold in cafeterias, such as pizzas, snacks and soft drinks, as well as parking activities, children’s recreation, punch bowls, barbershop and hairdresser. .
According to ACN, Before making such a decision by the government authorities public, working commissions were created to contact different producers and listen to their criteria.
Members of the Directorate of Finance and Prices also had permanent participation in this work to determine the cost sheets of each product, the publication highlights.
However, experts believe that this type of measure would have reduced effectiveness if it were not extended to other product distribution and sales networks that are part of the island’s economy.
“If the municipal authorities ‘lower’ agricultural prices, of ‘pizzas, snacks and soft drinks, and parking activities, children’s recreation, punch bowls, barbershop and hairdresser’, and not the prices in the entire MINCIN, CIMEX, TRD, mixed network , etc., they would be pouring water into baskets“considered the economist Pedro Monreal in a reflection on the subject published on his Facebook profile.
In turn, he stated that “Lowering prices (deflation) in the style of the Municipal Councils is very insufficient to align salaries/pensions with consumer prices, while at the same time it has little possibility of moderating inflation that expresses macro imbalances and asymmetries in the power of actors“.
Since the implementation of the Sorting Task As a route to update the prevailing economic model on the island during the last six decades, the Cuban population has suffered the effects of the constant increase in the prices of basic necessities, mainly in markets outside the undersupplied state sector.
The adoption of this strategy occurred when the impact of the COVID-19 pandemic was beginning to be felt, which, together with the increase in sanctions imposed by the United States, weighed down the results and aggravated the deep economic crisis that is still ongoing.
The inability to control the inflationary spiral from the production of goods and services, as well as to supply them through imports, have generated discomfort in part of the Cuban population and provoked incidents of social protest such as those that occurred in various parts of the island during the summer of 2021.
