A Cuban woman named Yunisleidis Hernández captured the collective fear spreading across the island in a brief video after the regime decided to remove price caps on essential goods like chicken, oil, powdered milk, pasta, and sausages.
Her Facebook video quickly became a barometer for the public's mood regarding this policy change, which took effect on June 20.
"They told me the price cap was being lifted. That everything now depends on competition, my dear. But let's be honest, what competition is there when every Cuban's pocket is empty?" Hernández questions in her video, her incredulity and exhaustion striking a chord with thousands.
The Government's Economic Shift
The measure was formalized with Resolution 150/2026 by the Ministry of Finance and Prices, signed by Minister Vladimir Regueiro Ale and published in the Extraordinary Official Gazette on June 20. This resolution nullified the controls set in July 2024, which had established maximum prices for six imported products.
Even President Miguel Díaz-Canel acknowledged the failure of these controls during a National Assembly session on June 18: "The price caps did not effectively contain inflation. They often led to product shortages, illegal markets, higher prices, and reduced tax revenue."
The Impact on Everyday Life
The lifting of these caps is part of a broader economic transformation package consisting of 176 measures presented by Prime Minister Manuel Marrero Cruz to the parliament on June 18 and 19, with the endorsement of the Communist Party Central Committee on June 17, involving Raúl Castro via videoconference.
Yet for Hernández and millions of Cubans, the market logic touted by the regime feels hollow against a harsh reality: "We've spent years watching prices climb, the dollar soar in the informal market, and every time we visit a store or farmers' market, the price is higher than before."
Economic Realities
Statistics support this view. Annual inflation in Cuba reached 15.89% in May 2026, with food and beverages rising by 19.24%.
The official average salary stands at a mere 6,930 pesos, roughly equivalent to 10 dollars, while economist Javier Pérez Capdevila estimates a family needs 96,000 pesos monthly just to cover essentials. The Cuban peso has depreciated about 40% in a year.
In provinces like Guantánamo, bottled oil already cost 1,555 pesos per liter, and powdered milk was 1,739 pesos per 500 grams even before the caps were removed. Economists like Pedro Monreal had warned since 2024 that controls would lead to repressed inflation and shortages, and reality has confirmed these warnings.
Now, with no caps and wages that barely cover a week's groceries, Hernández's question encapsulates the despair felt by an entire population: "The dollar rises, products rise, and people, people feel adrift."
Frequently Asked Questions about Cuba's Economic Situation
What prompted the removal of price caps in Cuba?
The Cuban government removed price caps as part of a broader economic reform effort to address inflation and financial instability, although previous price controls had failed to contain inflation and led to shortages.
How has the lifting of price caps affected daily life in Cuba?
The removal of price caps has contributed to rising prices for essentials, making it increasingly difficult for Cubans to afford basic goods amid depreciating wages and persistent inflation.
What are the economic projections for Cuba following these changes?
Economists predict continued economic hardship due to inflation, currency devaluation, and insufficient wages, despite the government's efforts to stabilize the economy through reforms.