Despite living in a society where we are told the workers own the means of production, inflation in Cuba is now at an annual rate of nearly 87%. This is socialism in action.
Cuba records an annual inflation rate close to 87%
At the end of May, Cuba is recording an annual inflation rate close to 87%, according to the data compiled by the prestigious American economist Steve H. Hanke from Johns Hopkins University.
“The Communist Paradise of Cuba never fails to fail. Today, I measured Cuba’s annual inflation at a punishing 86.66%,” wrote the economist on Twitter, including a table showing the trend of this index in recent years.
A few days ago, Hanke ranked Cuba as the ninth most miserable country in the world due to the disastrous economic policies adopted by Havana’s communist government.
Hanke’s annual misery index for 2022 placed Cuba below Ukraine, Yemen, Argentina, Sudan, Lebanon, Syria, Venezuela, and Zimbabwe.
The economist mentioned that since January 2022, the Cuban peso has lost 63% of its value against the US dollar, which is traded at 195 CUP in the informal market, and ranks fourth this week on the “Hanke’s Currency Watchlist.”
Officials had previously acknowledged that inflation soared to 45.36% in April.
“The overall year-over-year price increase in April of 45.36% and the year-over-year growth of 70.67% in food prices foreshadow a new ‘cursed’ year for the purchasing power of wages and pensions in Cuba,” said Cuban economist Pedro Monreal on Twitter, based on the statistical data released by the National Office of Statistics and Information (ONEI).
In March, ONEI data indicated food prices in Cuba had risen by 72.6% over the span of one year.
Cheese, cooking oil, malanga, flour, and other cereals, and rice were the products that experienced the highest monthly variation. On the other hand, peppers, tomatoes, beans, alcoholic beverages, and tobacco experienced decreases, according to the report from the government agency.
Recently, the Minister of Economy and Planning, Alejandro Gil Fernández, admitted that “we’re halfway there, but we are not doing well; we need to close ranks and pick up the pace,” referring to his estimation that it will take another 12 years for “the guidelines” of his economic policy to fully bear fruit.