Bolivian gov't attributes low inflation to subsidies-Xinhua

Bolivian gov't attributes low inflation to subsidies

Source: Xinhua

Editor: huaxia

2023-06-05 09:40:00

LA PAZ, June 4 (Xinhua) -- Inflation in Bolivia has remained low thanks to government subsidies that have kept prices from rising, Deputy Minister of Budget and Fiscal Accounting Zenon Mamani said Sunday.

Between January and May, inflation reached just 0.57 percent due to the policy of subsidies applied by President Luis Arce's administration to neutralize inflationary pressures and maintain economic stability, he told Xinhua.

While acknowledging the policy adds to the public deficit, Mamani said the government will continue to apply subsidies to strategic sectors, such as energy and food, because the benefits of low inflation and economic stability outweigh the costs.

According to a report released Friday by the National Statistics Institute, the Consumer Price Index showed an accumulated increase of 0.57 percent in the first five months of the year and of 2.90 percent in the past 12 months.

The increase was driven by price rises in a range of sectors, from food and beverages to housing and clothing, among others.