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Bolivia tries to stop inflation stimulated by negative factors

La Paz, Jun 6 (Prensa Latina) Bolivia is fighting to stop the Consumer Price Index (CPI), which in May registered its highest monthly point of the current year, Minister of Development Planning Sergio Cusicanqui declared.

The official stated that the indicator was 0.63%, caused by three negative factors: the weather effect, imported inflation and reverse smuggling.

Based on data provided by the National Institute of Statistics (INE in Spanish), Cusicanqui reported that the growth took place compared to April (0.57%), and the accumulated variation until May reached 1.95%.

The minister added that the growth in the inflation index was mainly caused by the positive variation in the prices of food and alcoholic and non-alcoholic beverages, property, diverse services, tobacco, furniture, estate, domestic services, living place, basic services, health, communications, recreation and culture, clothing and footwear, and transportation.

Cusicanqui said that increased prices reported in cities and suburban areas, explain the positive variation of 0.63% in May.

Bad weather conditions delayed the agricultural calendar with frosts and floods that reduced production.

“We also see an effect on imported inflation, prices rise in different economies and of the products we import, we end up absorbing those prices because we import them,” the minister explained.

As a third reason and example, the minister mentioned, what he called “reverse smuggling”, consisting of Bolivian products going to Argentina where the prices are higher.