Onions, meat, and soft drinks drive inflation in Bolivia | La cebolla, carne y gaseosas disparan la inflación en Bolivia

By Ernesto Estremadoiro Flores, El Deber:

Price Hike

Mercados alimentos

Eating is becoming increasingly expensive in Bolivia

The Consumer Price Index (CPI) rose significantly in May due to the higher cost of basic products like onions, chicken meat, and soft drinks. Accumulated inflation over five months is already nearing 10%.

In May, Bolivia recorded a monthly inflation rate of 3.65%, the highest so far this year, with an accumulated variation of 9.81%, according to the latest report from the National Institute of Statistics (INE). The rise was mainly driven by price increases in essential food items and everyday consumer goods.

According to the official report, the product that exerted the most pressure on the index was onions, which saw a 23.79% increase, with a direct incidence of 0.16 percentage points (p.p.) on the CPI. This was followed by chicken meat (+9.14%, incidence of 0.24 p.p.) and boneless beef (+5.44%, 0.27 p.p.), which became the most inflationary foods of the month.

Soft drinks also stood out for their impact, with a 4.68% increase and an incidence of 0.10 p.p., as well as restaurant lunches (+1.61%, 0.09 p.p.), reflecting a rise in the cost of living even outside the home.

On the other hand, some agricultural products showed price drops, although their effect was limited. Tomatoes fell by 23.38%, with a negative incidence of -0.21 p.p., while fruits such as mandarins, papayas, and oranges also recorded decreases, but with lesser impact.

In terms of regional behavior, the cities with the highest monthly inflation were Cobija (4.44%), Potosí (4.15%), and the Metropolitan Region of Cochabamba (4.05%). The La Paz conurbation reported 3.93% and Santa Cruz 3.47%, showing that the price increase was widespread nationwide.

The rise occurred in a context marked by fuel shortages, which have affected logistics and increased transportation costs, as well as difficulties in the supply of food and basic inputs, according to various productive sectors.

With accumulated inflation dangerously nearing 10% in just five months, economic analysts warn that the country could end the first half of the year with alarming figures, putting even more pressure on the purchasing power of Bolivian households.

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