Rafaela Cruz, a Cuban analyst for Diario de Cuba, asserts, “Ending inflation is not a priority for the Cuban regime.” Instead, “the Government exacerbates inflation as another [means] to maintain power and profit” by the following means:
1. “They raise taxes when economic activity is almost non-existent.”
2. “Subsidies (direct distributions) decrease when food is more expensive and scarce.”
3. Tax incentives for the creation of MSMEs are withdrawn even though their number is [very] low.”
4. “Castling is the monopoly of foreign trade, causing bottlenecks that make imports more expensive.”
5. “Salaries of some workers rise at the expense of [reducing] those of the rest.”
6. “Increase public spending by printing large amounts of money.”
7. “Prices of basic goods and services … rise.”
8. “The peso remains overvalued, which encourages imports.”
9. “Little, and poorly invested, in sectors far from domestic inspection.”
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Cruz, nine reasons that show that the Cuban Government fuels inflation, Diario de Cuba (Feb. 28, 2024.
