Bolivian Inflation Reaches Highest Level in Nearly a Decade

LA PAZ (Reuters) – Bolivian inflation has surged to its highest level in nearly ten years, according to data from the national statistics office INE, with a 12-month rate of 5.19% and a monthly increase of 1.58%.

This rate is significantly above the central bank’s target of 3.6% for the year. Annual inflation last exceeded current levels in February 2015, while the monthly price increase was last this high over 13 years ago in February 2011, based on central bank data.

Cumulative inflation for the first eight months of 2023 reached 4.61%, compared to just 0.39% over the same period last year, which had a cumulative rate of 1.55%.

INE director Humberto Arandia stated during a press conference that prices have increased for essential items such as rice, chicken, and tomatoes. The report also highlighted that the monthly price hikes were primarily driven by leisure and cultural activities, along with goods, services, and furniture. Conversely, education and transport saw price reductions.

Additionally, Bolivia is facing the largest number of wildfire outbreaks in 14 years, forcing farmers to abandon their fields, alongside ongoing strikes due to extended fuel shortages.

The country closed 2023 with an annual inflation rate of 2.12%.