Inflation in Bolivia Out of Control | La inflación en Bolivia se salió de control

By RTP, Eju.tv:

Analyst: Gonzalo Chávez

So far this year, inflation has reached nearly 17%.

Economic analyst Gonzalo Chávez warned that inflation in Bolivia has exceeded control limits, severely affecting the purchasing power of the population, especially in the food sector, which, he noted, has seen price hikes of up to 40%.

“If we compare with July 2024, the outlook is worthy of an economic thriller: over 25% overall inflation, but the movie turns into a horror story when we talk about food, which has increased by around or even more than 40% in some cases,” Chávez stated, stressing that “eating is becoming a luxury” for many Bolivian families.

The National Institute of Statistics (INE) reported that cumulative inflation up to July this year reached 16.92%, far exceeding the Government’s official projections.

Chávez illustrated the real impact of this figure on incomes: “If a person earns Bs 2,700 a month, with 17% inflation, they are losing Bs 459 of their purchasing power. In other words, their salary is actually worth Bs 2,241.”

He also warned that the situation is worsening due to falling international reserves and deteriorating wages. “Inflation not only distorts prices but also redistributes income regressively, punishes savings, breaks contracts, and deepens job insecurity,” the economist lamented.

por Alejandra Hinojosa

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