The president of Bolivia stressed that his country is the one that maintains the most stable prices in South America. The fact that inflation is not affecting them, unlike other countries, he attributed to their economic management.
The Consumer Price Index (CPI) of Bolivia stood at 1.2% in the first six months of the year, one of the lowest figures in South America, thanks to a low exchange rate, the subsidy in several products of the family basket and price controls, informed the authorities.
The Central Bank of Bolivia (BCB) stressed that the IPC has been maintained in the face of “confidence” in the local currency, the Boliviano.
“So far in 2022, the economic conditions observed in the countries of the region contrast with the performance of the Bolivian economy in terms of economic resultsprice stability and confidence in our currency,” the BCB said in a statement.
The Central Bank also highlighted that in commercial transactions in border areas the use of the Bolivian has increased, as well as “means of savings for populations of neighboring countries.”
For his part, the Bolivian president, louis arcehighlighted that thanks to the “application” of its economic model, Bolivia is “once once more an example of economic management in the region.”
Despite the international crisis, #Bolivia It is the country with the most price stability in South America. As of June 2022 we have 1.2% inflation, the lowest in the continent. The application of our Economic Model allows us to once once more be an example of economic management in the region. pic.twitter.com/ISQV8rOLJb
– Luis Alberto Arce Catacora (Lucho Arce) (@LuchoXBolivia) July 10, 2022
“Despite the international crisis, Bolivia is the country with the most price stability in South America. As of June 2022 we have 1.2% inflation, the lowest in the continent. The application of our Economic Model allows us to once once more be an example of economic management in the region,” Arce wrote on his Twitter account.
According to the Bolivian authorities, the implementation of “different measures to promote the economic recovery process, maintaining a balance with the control of inflation”, in addition, the “exchange stability policy” has contributed “to mitigate external inflationary pressures” due to covid-19 and the war in Ukraine and to “give certainty to the population”.
The BCB pointed out that confidence in the local currency remains stable and that the “Bolivianization of the financial system is at high levels. Close to 85% of savings and 99% of loans are in Bolivians”.
The Bolivian Institute of Foreign Trade (IBCE) indicated that by sectors the data on education stands out, which registered an inflation of 4.34%, goods and services of 2.67%, food and non-alcoholic beverages of 2.31%, for on the contrary, items such as transportation reported negative figures with -1.04%, alcoholic beverages and tobacco -0.97% and communications -0.53%.
The IBCE detailed that the “low exchange rate, fuel subsidy, subsidy in various products of the family basket, price control, export restriction and smuggling” are among the measures that position Bolivia with one of the best CPIs in the region.
Bolivia closed 2021 with an accumulated inflation of 0.90% and according to official economic projections, the country will have a growth of 5.1% this year, an inflation of 3.4% and a fiscal deficit -8%.
