Bolivia's Inflation Skyrockets: A Close Look at the Latest Reuters Findings
Analyzing Bolivia's Inflation Surge
LA PAZ (Reuters) - Bolivia's inflation hit its highest level in nearly ten years, with a 12-month rate of 5.19%, according to data from the national statistics office INE released on Friday. This alarming figure indicates a monthly increase of 1.58%, which remains significantly above the central bank's target of 3.6% for this year.
Annualized inflation last exceeded current levels in February 2015, while the monthly price hikes were last this high over 13 years ago in February 2011, based on central bank data. Cumulative eight-month inflation now stands at 4.61%.
In August last year, inflation was a mere 0.39%, with a cumulative rate of 1.55%. Director of INE, Humberto Arandia, indicated that the recent price escalations are primarily in staples like rice, chicken, and tomatoes. The monthly price surge was propelled by increases in leisure activities, cultural goods, and domestic work.
Interestingly, while inflation spikes in many sectors, areas such as education and transport saw price reductions. Bolivia is currently battling its most severe wildfire scenarios in 14 years, forcing farmers to abandon land. Additionally, unrest over fuel shortages has contributed to economic strain. The annual inflation rate for 2023 concluded at 2.12%.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.