This is yet another tale of a foretold failure. Once again, the Cuban regime boasted about implementing a "price cap" to control food costs, only to see the measure crumble almost as quickly as it was announced.
According to a recent report by the state-run Canal Habana, the governor of the capital set regulated prices for agricultural products, supposedly to "stabilize the market and promote local production."
However, interviews conducted by the same state media reveal that the reality diverges significantly from the official narrative.
During a tour of the Santa Catalina and Juan Delgado market in the Diez de Octubre municipality, the channel featured residents claiming that prices "seemed stable," although most of those interviewed acknowledged increases and shortages of basic foods.
"Every market sees rising prices; chicken mince is now 320 pesos, up from 280 just a month ago," commented one resident.
Another shopper was more blunt: "Fish is outrageously expensive, and the rice is terrible; the lines are unbearable."
While the official report attempts to highlight the "compliance" with new prices, citizen statements expose the same old pattern: price caps do not curb inflation, products vanish, and the black market thrives.
The lack of supply and price disparities among markets reflect a structural issue that the government tries to mask with controls and resolutions that are neither enforced nor monitored, despite regime campaigns of "crackdown."
In neighborhoods like Arroyo Naranjo, Centro Habana, and Marianao, the prices of sweet potatoes, bananas, and pork far exceed the official limits. This situation is echoed in other provinces as well.
Havana's "new economic experiment" confirms what Cubans have warned for years: without market freedom, production incentives, or the basic conditions for producers, no price cap can halt the rising cost of living in the capital.
Understanding Cuba's Price Cap Challenges
Why do price caps fail in Cuba?
Price caps in Cuba often fail due to a lack of market freedom, inadequate production incentives, and insufficient conditions for producers, leading to inflation and scarcity.
How do price caps affect the black market?
Price caps can strengthen the black market as they create shortages in official markets, prompting consumers to turn to unofficial sources for goods.
What are the consequences of not enforcing price controls?
Without enforcement, price controls are ineffective, leading to price disparities, product shortages, and increased reliance on the black market.