Bolivia maintains controlled inflation and expects to close 2022 with an index within the projected

Bolivia maintained controlled inflation between January and November 2022 and one of the lowest in the South American region, registering 3% in this macroeconomic indicator that, according to experts and the Government, will close the year within the forecast.

Despite the fact that inflation was high in November, this indicator remains below 3.3%, the percentage set by the Government and the Central Bank of Bolivia (BCB) in the Financial Fiscal Program at the beginning of this year.

The state National Institute of Statistics (INE) reported that, in November 2022, the Consumer Price Index (CPI) registered a positive variation of 0.47% compared to October. The accumulated variation up to November was positive, with an increase of 3%, and a twelve-month increase of 3.17%.

The Deputy Minister of Tax Policy, Jhonny Morales, recently told reporters that his government expects to close until December with inflation below that projected for this year, and one of the lowest in the South American region.

“Based on official data, we can say that we will close the year with a controlled inflation rate and without any surprises,” he emphasized.

In turn, economist Mike Gemio, Master in Management and Public Policy, told Xinhua that Bolivia has low inflation sustained by the immovable exchange rate of the dollar against the Bolivian, which has been in force since 2011.

“While other countries are devaluing their currency or raising interest rates, Bolivia is working to strengthen the local currency, which allows it to sustain a low inflation rate,” he added.

He also attributed it to the subsidy policies for hydrocarbons and some foods to face the escalation of prices and maintain stability.

For his part, the economist Luis Ballivián, financial analyst and former official of the Central Bank of Bolivia (BCB), told Xinhua that the positive variation to November shows a progressive recovery in demand and, mainly, stable prices.

According to Ballivián, in an international inflationary context, the Bolivian indicator is a good sign of the stability of the internal market and positive results of a containment strategy to face external pressures.

In addition, he said that the monetary policy that is carried out in Bolivia must continue to be oriented towards the objective of maintaining the stability of the internal purchasing power of the currency and maintaining adequate levels of liquidity, preserving economic stability.

With information from Xinhua