by Yosley Carrero
HAVANA, Dec. 20 (Xinhua) -- Havana resident Pedro Ramirez on Monday rushed to buy some foodstuffs ahead of Christmas festivities.
The 47-year-old mechanical engineer, however, feels he can now purchase less though he earns much higher than last year.
"I bought pork meat, vegetables, and fruits, but consumer prices have gone so high," he told Xinhua while shopping at a market in the Cuban capital.
The rising inflation came almost one year after the Cuban government started implementing a monetary overhaul that eliminated the dual currency system in place on the island since 1994, and increased salaries, pensions and social security payments while transforming the pricing structure completely.
In addition, the island nation has approved the legalization of micro, small and medium-sized enterprises under a new legal framework put into effect on Sept. 20.
Sonia Cruz, who works for a state laboratory, expects that the resumption of the economic activity after the coronavirus lockdown hiatus could bring down prices.
"I do not doubt that if the state companies improve their performance, particularly those related agriculture and exports, things will go better for the economy," she said.
The Cuban government has recognized inflation as a major threat to its attempt to keep the economy on track amid the COVID-19 pandemic and the U.S. economic sanctions against the island, which have both created supply chain problems.
By the end of the year, inflation in the Caribbean nation is expected to jump over 70 percent, according to official statistics.
The national production of goods and services is fundamental in the fight against inflation, said Cuban Minister of Economy and Planning Alejandro Gil, adding that "in 2022, we will advance in the elimination of inflation."
Gema Ruiz, who provides catering services to locals in central Havana, said that inflation has a huge impact on small businesses.
"The current inflation erodes the purchasing power of clients and makes it more difficult for me to buy raw materials," she said.
"If all economic actors give an effective response to the government's call for productivity, we will beat inflation," she added. Enditem
