Between June and August, inflation in Cuba climbed five spots among the world’s worst to be ranked as the world’s second highest this weekonly Zimbabwe is behind, said Steve Hanke, senior professor of applied economics at Johns Hopkins University.
“Economic collapse knows no bounds in the communist paradise of Cuba. Cuba is second on this week’s inflation scale. On August 18, I measured Cuban inflation at a whopping 135%.”Hanke hinted on Twitter and accompanied his comment with the updated table on the topic, which he prepares and publishes every week.
The economic collapse knows no borders #Cuba‘s communist paradise. Cuba ranks 2nd in this week’s inflation survey. I measured on August 18th #Inflation in Cuba at a staggering 135%/year. pic.twitter.com/TOWV11TlS6
— Steve Hanke (@steve_hanke) August 21, 2022
According to these parameters The annual inflation of 135% that Hanke quotes for Cuba is only surpassed by Zimbabwe at 479%.and is very close to that of Turkey which accumulates 132%.
It is followed by countries such as Sri Lanka (104%), Lebanon (89%), Ghana (77%), Argentina (75%), Laos (72%) and Venezuela (67%).
Although Hanke’s measurement does not use official figures for reference in relation to Cuba, since the island’s authorities do not regularly publish these figures, represents a deterioration in the country’s economic situation.
The inflation curve has steepened even further after authorities announced a “currency market” with little expectation of people being able to sell foreign currencies to the statewhich pays them about 120 pesos per US dollar, a figure close to what prevailed in the informal market up until July.
As economists have predicted The announcement had an immediate impact on the price of currencies in this market, where the US dollar is now trading at more than 140 Cuban pesos.
In June, inflation in Cuba was around 70%, according to Hankeand ranks the second worst in Latin America, behind only Venezuela in the region, and the seventh highest in the world.
Since the Cuban government applied the economic package, euphemistically called the Task Order, in January 2021, the living standards of Cubans have deteriorated. While the island is suffering from severe shortages, food production is well below basic needs and the economy is struggling in the wake of the Covid-19 crisis, prices have not stopped rising.
Added to this is the almost complete paralysis of the economy due to power outages lasting more than 12 hours which occur across most of the island and which have led to an increase in protests.