La Razon, Willy Chipana reports how inflation has hit harder the Bolivian poor:
The Jubileo Foundation reported that inflation in 2011 affected more the poor because it became 7,04% due to the rise in food prices. The figure is slightly higher than announced by the National Institute of statistics (INE).
“The accumulated variation in the consumer price index of the poor (CPI Poor), during 2011, slightly exceeded the goal announced by the Government and reached 7,04%,” says the report of the Foundation. Inflation in 2011 closed at 6.90%.
According to that institution, dependent of the Catholic Church, inflation affecting the poor is explained by the increase in the prices of the food consumed at home affecting more the general consumer price index General (CPI General). “One third of the inflation corresponds to the increase in these prices.”
“Until December 2011 the cumulative inflation of food and beverages consumed at home came to 6.89%, lower than the previous year,” says the report of Jubileo In addition, the report reveals that Santa Cruz was the cheapest in 2011 in the purchase of food as compared with the other cities of the central axis (La Paz, Cochabamba, Santa Cruz).
For this reason, the Jubileo Foundation requests the INE transparency in the information and participation of civil society to show the appropriateness of their data. “The State must consolidate the national system of statistical information that allows the independence of the INE through a regulating law”.
http://www.la-razon.com/economia/Jubileo-inflacion-afecto-pobres_0_1540045997.html
Santa Cruz may have had the lowest inflation regarding food supplies but the services to the household like carpenters, plumbers, et al rose considerably. In any case, when inflation is higher on food intake, poor households suffer the most as most of their already low-income goes for food alone.
