Cost of living skyrockets and uncertainty grows | Costo de vida se dispara y crece la incertidumbre

By El Deber:

INFLATION

La moneda boliviana ha perdido valor respecto al dólar estadounidense.

The Bolivian currency has lost value against the U.S. dollar.

Economists predict that June’s inflation will surpass May’s record and climb to 23% year-over-year.

When a country’s inflation exceeds double digits, purchasing power quickly begins to erode. This phenomenon is not just a theoretical concern: it means that what can be bought today with 100 bolivianos might cost 110 or more tomorrow. This ongoing price escalation—especially in essential goods such as food, fuel, and clothing—directly affects household incomes and creates a climate of widespread uncertainty.

In this context, Bolivia is facing one of the most critical junctures in its recent history. According to data cited by Bloomberg Línea, the country recorded a monthly inflation rate of 3.65% in May and a year-over-year rate of 18.46%, the highest level in 34 years. This figure reflects not only a sustained increase but also the loss of price stability that defines runaway inflation, surpassing the 10% annual threshold that separates moderation from chaos.

Economist Jonathan Fortún of the Institute of International Finance warns that this trend will continue in the coming months. In his view, both internal and external pressures are driving prices up. Among them, he mentions the shortage of foreign currency, political uncertainty, blockades, and the effects of the geopolitical crisis between Iran and Israel on oil prices. “Inflation in Bolivia will continue to rise. There is room for it to keep climbing,” Fortún stated.

Another analysis, by the president of the College of Economists of Tarija, Luis Fernando Romero, projects that June could set a new record. Romero estimates that monthly inflation could exceed 4%, while the accumulated rate for the year would be between 13% and 14%, and the year-over-year rate could reach between 21% and 23%. He warned that the structural factors feeding this trend—such as smuggling, monetary expansion, and fuel shortages—remain unresolved, and are now compounded by recent blockades promoted by political sectors.

Both experts agree that the country could soon enter an even more delicate situation if urgent corrective measures are not taken. Persistent inflation not only makes daily life more expensive, but also hinders investment, distorts the market, and fuels social unrest. As elections approach, economic challenges could also become a decisive factor in the political arena.

Official data for June is expected in the coming weeks, but forecasts already indicate that inflation will remain one of the main threats to Bolivia’s economy for the rest of the year.

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