MercoPress. South Atlantic News Agency

Bolivian inflation soars amid political unrest and poor weather

Road blockades promoted by former President Evo Morales in US$ 3 billion worth of losses

According to a report released Sunday by Bolivia's National Statistics Institute (INE), the South American country's inflation last year stood at 9.97% amid poor weather, social conflicts, and road blockades that deteriorated the economy considerably. INE Director Humberto Arandia also pointed out that the 2024 figure was the highest in the last 16 years.

“Since adverse weather effects, together with significant imported inflation, political conflicts that paralyzed the country for more than 40 days and speculation made inflation reach 9.97%, a high figure, there is no way to deny it. A figure that affects the pockets of all Bolivians,” Arandia explained.

Basic food basket items rose considerably in the last months of 2024, particularly rice, beef, chicken, cooking oil, and wheat flour. Since the end of May, the price of rice in Bolivia increased by 79% and 41% respectively in the “popular” and “carolina” varieties, it was explained.

“In 2007 and 2008 we have registered even higher figures in a similar context, in 2007 with 11.7% and in 2008, with 11.9%, then this inflation becomes significant,” Arandia also pointed out.

For 2025, the Bolivian government forecasts a Gross Domestic Product (GDP) growth of 3.51% and inflation of 7.5%.

President Luis Arce Catacora insisted Saturday that he would do whatever is necessary to maintain the stability achieved. ”The economic stability of our country, the pockets of Bolivians, our government will defend to the letter (...) there should be no doubt that we will do everything necessary, brothers and sisters, to ensure the stability that we all need and that we have achieved,“ he said during an appearance at a women organization's event in Santa Cruz.

”Rebuilding our country and recovering our natural resources to benefit Bolivians ... is the basis of our economic model that we are not going to change, we are going to adapt it, we are going to improve it for the benefit of the Bolivian people, with you we are going to do it,“ he insisted.

Meanwhile, Economy Minister Marcelo Montenegro said it was sheer ”cynicism” what certain political leaders did by promoting road blockades for 40 days causing losses of up to US$ 3 billion, while speaking about saving the economy. However, he did not mention former President Evo Morales by name, who is known to be behind these protests.