Cuban Foreign Minister Bruno Rodríguez Parilla has expressed satisfaction with the reported decrease in inflation in Cuba, attributing this development to the government's strategic plan. "The year-over-year inflation rate for May in Cuba was 16.43%, a significantly improved figure compared to the previous year," Rodríguez posted on X, referencing statistics from the National Office of Statistics and Information (ONEI).
Despite the government's poor economic management, which many scholars refer to as a "polycrisis," Cuban officials continue to arrogantly boast about their governance as if living in an alternate reality. "The achieved figures result from implementing the Government Program aimed at correcting distortions and revitalizing the national economy," stated the foreign minister.
Inflation Trends in Cuba
The National Office of Statistics and Information (ONEI) reported on Monday that Cuba's year-on-year inflation in the formal market reached 16.43% in May, the lowest level recorded since the pandemic began. This figure, though notably lower than the 31.11% reported in May 2024—according to official data—remains high and heavily impacts vulnerable groups, including workers, retirees, and low-income families.
On a monthly basis, the consumer price index (CPI) increased by 0.83%, while the cumulative variation for the year reached 7.45%. The ONEI also highlighted that over 90% of Cuban incomes are spent on the goods and services in the basic basket, which forms the basis for calculating the CPI, though it fails to meet essential needs.
By sector, the most significant increases were seen in Alcoholic Beverages and Tobacco, with a staggering 119.79% year-over-year rise. This was followed by Restaurants and Hotels (23.62%), Miscellaneous Goods and Services (16.89%), Education (16.83%), and Housing-related Services (15.35%).
Only four categories experienced increases below 10%: Recreation and Culture (7.94%), Transport (5.54%), Health (0.83%), and Communications (0.46%). According to official statistics, inflation has had a cumulative devastating effect: since 2020, prices have tripled, with the CPI closing at 77% in 2021, then dropping to 39.07% in 2022, 31.34% in 2023, and 24.88% in 2024.
Among the products driving monthly price increases in the "Food and Non-Alcoholic Beverages" division were rice, chicken eggs, and pork. These staples, crucial in the average Cuban diet, significantly impacted the overall index variation, highlighting not only their weight in daily consumption but also their fluctuating availability and pricing in both formal and informal markets.
However, the general perception among citizens is that actual inflation is far higher than what authorities acknowledge.
Understanding Cuban Inflation and Economic Policies
What is the current inflation rate in Cuba?
As of May, the reported year-over-year inflation rate in Cuba stands at 16.43%, the lowest since the pandemic began.
How does inflation affect vulnerable groups in Cuba?
High inflation impacts vulnerable groups such as workers, retirees, and low-income families by increasing the cost of living and reducing their purchasing power.
Which sectors have seen the highest inflation in Cuba?
The sectors that have experienced the most significant inflation are Alcoholic Beverages and Tobacco, followed by Restaurants and Hotels, Miscellaneous Goods and Services, Education, and Housing-related Services.