Rising inflation | Inflación en aumento

By Aldo Aguilera, El Dia:

Bolivia has the third-highest inflation in the region, only behind Argentina and Venezuela

Inflation in August was 1.58%, and the 12-month rate is 5.19%, according to the state-run National Institute of Statistics.

The issue of inflation, which went unnoticed during the first three years of Luis Arce’s administration and was even mentioned as one of the economic milestones, now threatens to become another point of concern and criticism.

The accumulated inflation since January, at 4.61%, places Bolivia as the third-highest in Latin America in this category, only behind Venezuela and Argentina, highlights Bloomberg, a site specialized in economic and financial matters. “In Bolivia, once the country with the lowest inflation in Latin America, prices have been accelerating sharply, and the year-on-year inflation exceeded 5%,” notes Bloomberg in a report on the inflation ranking in the region.

Inflation in August was 1.58%, and the 12-month figure is 5.19%, according to the National Institute of Statistics (INE).

Among the 19 countries Bloomberg lists, Argentina leads with a 94.8% increase since January and 236.7% year-on-year. Venezuela follows with 11.2% so far in 2024 and 35.5% over 12 months.

Colombia is fourth with 4.3% and 6.12%, respectively. Costa Rica is the country with the least price fluctuation, with 0.21% this year and 0.31% year-on-year.

When announcing the August figure, government authorities indicated that the country faces a complex scenario regarding inflation, but attributed the phenomenon to speculation, imported inflation (that is, price increases in other countries), and climate phenomena such as El Niño and La Niña, which have disrupted planting and harvest cycles.

Figures from the agricultural sector could complicate the situation in the coming months. Production in the current winter campaign is expected to reach 580,000 tons, a 70% collapse compared to the 2 million harvested in 2023.

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