{"id":234106,"date":"2021-02-04T11:00:52","date_gmt":"2021-02-04T16:00:52","guid":{"rendered":"https:\/\/oncubanews.com\/en\/?p=234106"},"modified":"2021-02-04T11:00:52","modified_gmt":"2021-02-04T16:00:52","slug":"the-monetary-reorganization-prices-i","status":"publish","type":"post","link":"https:\/\/oncubanews.com\/en\/cuba\/economy\/cuban-economy\/the-monetary-reorganization-prices-i\/","title":{"rendered":"The reorganization\u2019s prices (I)"},"content":{"rendered":"

It\u2019s already been a month since the implementation of the <\/span>monetary reorganization<\/span><\/a> in Cuba. Since last January 1, Cubans face a long-delayed scenario which since <\/span>its official announcement<\/span><\/a> in December has shaken the island\u2019s day-to-day life and has forced state businesspeople and officials as well as ordinary workers and retirees to use a calculator.<\/span><\/p>\n

No one escapes the impact of the reorganization in their pockets. Even though this process has represented an increase\u2014in many cases, substantial\u2014in <\/span>wages and pensions<\/span><\/a> it has also brought about a tricky multiplication of many prices, which, together with the chronic economic crisis the country is suffering and the consequent deficit of supplies, is a steep slope for Cuban families. All this, just as Cuba is going through its worst COVID-19 outbreak since the start of the pandemic.<\/span><\/p>\n

The authorities have insisted that the new monetary reality implies, for various reasons, a rise in prices. Minister of Finance and Prices Meisi Bola\u00f1os <\/span>has said<\/span><\/a> that the devaluation of the Cuban peso (CUP) \u201cleads to an increase in costs, not only at the domestic level but in the economy at a macro level\u201d\u2014due to factors such as the rising cost of imports, due to the new exchange rate for the State business sector, and the need to cover the new salary of workers and generate profits\u2014, to which is added the government policy of \u201celiminating excessive subsidies and undue gratuities\u201d and \u201cstimulating work.\u201d<\/span><\/p>\n

Meanwhile, the government itself has recognized that conditions exist for \u201ca higher inflation than designed\u201d\u2014due to the supply deficit, the increase in income and the aforementioned increase in costs\u2014and has called for increased production efficiency and to \u201cface speculative and abusive prices among all.\u201d \u201cIf the price increase goes out of control, then the new wages are affected and the purchasing power capacity is lost,\u201d Marino Murillo, head of the Commission for Implementation and Development of the Guidelines, <\/span>has warned<\/span><\/a> logically.<\/span><\/p>\n

La tozudez de los precios<\/a><\/p><\/blockquote>\n