Bolivia's inflation reached 3.65% per month, the highest in the last 40 years.

The Consumer Price Index (CPI) of Bolivia, the main indicator for measuring inflation in the country, experienced a sharp increase in May, reaching a concerning 3.65%, and accumulating 9.81% so far this year, according to Humberto Arandia, director of the National Institute of Statistics (INE), on Friday.

This rate represents the highest level of inflation recorded in a month of May in the last 40 years, a figure that reflects a significant impact on the economy and on the purchasing power of Bolivian citizens.

Luis Fernando Romero, president of the College of Economists of Tarija, highlighted the seriousness of the increase: "The 3.65% inflation is the highest in the last 40 years, comparing the months of May during this period. It is even higher than the annual inflations from 2009 to 2023."

The detailed report from INE indicated that the products that most influenced this increase were mainly food items, such as boneless beef, chicken meat, and onions. In addition, the report also highlighted the rise in prices of soft drinks, lunches, and beef with bone, products that are an essential part of the basic consumer basket.

In a press conference, Arandia acknowledged the complexity of the month and stated that "we have undoubtedly had a complex month and we feel it in our pockets every day, and something that is exacerbating the situation is the political conditions we are facing."

The price increase

The increase recorded in the May CPI in Bolivia is largely attributed to the rise in prices in various categories, including Miscellaneous goods and services; Furniture and household items; Clothing and footwear.

A positive variation was also observed in sectors such as Food and non-alcoholic beverages; Health; Recreation and culture; meals outside the home; Communications; alcoholic beverages and tobacco; Housing and basic services; and Transportation.

It is worth noting that May's inflation is the highest of the year so far. The previous months showed smaller increases: January closed at 1.95%; February at 1.20%; March at 1.71%; and April saw a relative decrease, standing at 0.90%.