Bolivia keeps inflation under control with 1.76% up to September

Between January and September, Bolivia maintained controlled inflation and one of the lowest in the South American region with 1.76%, the state-run National Institute of Statistics (INE) and the Government announced on Wednesday, October 5.

In September, the Consumer Price Index (CPI), or inflation, which measures the variation of prices of products, goods, and services, registered a positive variation of 0.14% compared to August.

“The accumulated variation was 1.76%, and at 12 months, it was positive with an increase of 1.89%,” the INE states in its report released on Wednesday.

The report specifies that the 0.14% increase in the CPI registered in September is mainly explained by the positive variation of prices in the following divisions:

• Furniture, household goods, and services;
• Food and non-alcoholic beverages;
• Miscellaneous goods and services;
• Housing and basic services;
• Food and beverages consumed outside the home;
• Alcoholic beverages and tobacco;
• Clothing and footwear.

On the other hand, the Vice Minister of Communication, Gabriela Alcón, stated that Bolivia maintains a controlled and low inflation, despite the adverse international context.

She also highlighted the “fascinating” qualification recently given by the World Bank for inflation control in the South American country.

According to the Government spokeswoman, the Social Community Productive Economic Model, restored in November 2020, allowed Bolivia to regain its stability and position itself again as one of the best economies in the region.

She highlighted the growth and low inflation compared to other countries, which experience devaluations within those macroeconomic indicators.

“While several countries in the world have inflation problems, in Bolivia, this situation does not happen because of its price stability,” she added.

“Our model prioritizes domestic demand, the supply of the domestic market, and in this area, we encourage public investment, food production for the domestic market, and exports,” she said.

Gary Rodríguez, economist and general manager of the private Bolivian Institute of Foreign Trade (IBCE), told Xinhua that while other countries are struggling with inflationary pressures, Bolivia has controlled inflation, supported by the subsidy model, the Bolivianization policy, exchange rate support and price controls.

According to the expert, low inflation promotes the efficient use of productive resources, reduces uncertainty, and encourages investment.

“Undoubtedly, in 2021 and now this year, Bolivia will experience the lowest inflationary index in the region,” he said.

With information from Xinhua