Cuba’s inflation rose as oil and powdered milk prices increased
Cuba’s National Statistics and Information Office (Onei) reported that consumer prices increased by 2.56% in July from the previous month. The cumulative rise since the start of the year reached 15.12%, while the 12-month rate was 20.70%, compared with 14.37% over the equivalent period a year earlier.
An alternative estimate published by economist Steve Hanke put Cuba’s annual inflation rate at 67% in a chart released on the same Tuesday. That figure placed Cuba behind Venezuela, Iran, North Korea and Sudan in the chart’s ranking of countries with the highest inflation rates.
Food prices led the monthly increase
Food and non-alcoholic beverages recorded a 3.51% monthly increase and supplied 63.18% of the overall change. Their share of the consumer basket gave them a larger contribution than some categories with faster price growth. Alcoholic drinks and tobacco rose 6.07%, while restaurants and hotels increased by 3.68%.
Within the food category, bottled cooking oil was listed at between 1,400 pesos per litre in Pinar del Río and almost 2,800 pesos in Havana. Powdered milk cost between 900 and 1,500 pesos per pound. The article also reported a bottle of oil being sold for 4,500 pesos at an informal stand on Galiano Street in Havana.
Other categories and government measures
Transport prices rose 1.05% and contributed 4.06% of the monthly increase. Miscellaneous goods and services went up 2.33%, with a 4.86% effect on the index. Furniture and household goods increased 2.22% and contributed 2.10%.
Housing services rose 1.60%, contributing 1.32%, while clothing and footwear increased 1.30%, with a 0.97% effect. Recreation and culture rose 0.80% and accounted for 0.50%. Communication prices changed by 0.08%, and health prices decreased by 0.01%.
The figures released by Onei did not include measures introduced by provincial governments to curb inflation. The measures include price ceilings, limits on commercial profits, inspections and fines. The source reported shortages, higher food prices in informal markets and business closures after the regulations were introduced.
