In a candid discussion on their podcast "Punto y aparte," three journalists from Invasor, the official newspaper of Ciego de Ávila province, openly admitted that the price caps in Cuba were essentially ineffective. They described these regulations as mere paper decrees that never materialized in actual market practices.
The episode, recorded in late July, featured journalists Roberto Carlos Delgado and Filiberto Pérez Carvajal, along with the show's host, engaging in an unscripted conversation about the pricing crisis plaguing the island. This crisis intensified after the removal of national price caps on essential goods like chicken, oil, milk powder, pasta, and sausages.
Pérez Carvajal delivered the most striking admission during the discussion, recalling how Invasor frequently published entire pages listing capped prices for agricultural products such as yucca, sweet potatoes, squash, and taro. However, these items never appeared at those prices in the markets: "Our readers have repeatedly criticized us, even calling us liars because what we published was never reflected in the markets. It was just empty words."
The journalists highlighted the widespread ignorance and non-compliance with Resolution 148 from the Ministry of Finance and Prices, which mandates cost sheets for setting prices. "There's a general lack of awareness of what Resolution 148 stipulates. When you visit the markets, you realize that today's price might be different tomorrow, and there's no explanation," Delgado explained.
They also questioned the new pricing rules based on "market correlation" that will replace the mandatory cost sheets. "It involves a lot of qualitative and subjective elements, making it much harder to control," they warned.
The program concluded with a sobering warning that captures the plight of millions of Cubans: "These will be painful transformations, fundamental changes that alter the property structure beyond what most of us could have imagined."
The discussion also bluntly assessed the state's ability to manage these changes: "Frankly, the control mechanisms are not yet defined. There's no clear guideline on how this complex transformation process will be managed, and it will be challenging."
This conversation occurred weeks after the regime abolished national price caps via Resolution 150/2026, part of a set of 176 economic measures announced by Díaz-Canel in June.
Invasor's journalists pointed out that the removal of these caps does not justify the rising prices: "If prices were high before the resolution was repealed, the problem is much more severe than whether the resolution is in place or not."
Following the cap removal, oil prices soared to between 4,000 and 7,000 pesos per liter in informal markets, despite the previous cap being set at 990 pesos.
Several provinces responded by establishing their own local limits. In Villa Clara, inspectors found eggs being sold for 4,200 pesos each, while the provincial cap was set at 110 pesos.
This turmoil unfolds against an official annual inflation rate of 20.70% in July 2026, with food prices rising by 26.36% annually. Economist Steve Hanke estimates Cuba's actual annual inflation rate at a staggering 67%.
Understanding Cuba's Economic Challenges and Price Caps
What was the purpose of price caps in Cuba?
The price caps in Cuba were intended to control the cost of essential goods like food and prevent inflation from spiraling out of control, ensuring affordability for the population.
Why were the price caps considered ineffective?
The price caps were deemed ineffective because they were not enforced in actual market conditions. Despite official publications, the capped prices rarely appeared in markets, leading to criticism and skepticism among consumers.
How did the removal of price caps affect Cuba's economy?
The removal of price caps led to significant price increases, particularly in informal markets, exacerbating the financial strain on consumers already grappling with high inflation and economic instability.
What are the challenges of the new market correlation pricing system?
The new market correlation pricing system involves subjective elements, making it difficult to regulate and control prices effectively, potentially leading to further economic challenges.