Bolivian Economist Warns of Unprecedented Inflation and Devaluation Crisis

Bolivia Faces Unprecedented Inflation: Economist Claims Official Figures Misleading Santa Cruz, Bolivia – Economist Antonio Saravia has warned that Bolivia is experiencing unprecedented levels of inflation, with official figures potentially understating the true economic challenges faced by the nation. According to Saravia, inflation surged by 43% between May and June, while food inflation alone has reached 34%. Speaking on eju.tv, Saravia stated, "These numbers are false, they are a lie, because each one of us, when we go to the market to buy, knows that inflation is already above 34%." He cited examples, noting that meat prices have increased by 100%, and condensed milk prices have risen by more than 100% for consumers. Saravia attributed the escalating economic woes to a prolonged period of fiscal deficit. "This is the result of 11 consecutive years of fiscal deficit, at a rate of around 10% of GDP," he explained. This persistent deficit, he argued, forces the state to rely on the Central Bank to print more currency to service its debt. "When the Central Bank prints banknotes, it generates two things that are twins: inflation and devaluation," Saravia concluded, predicting that the situation will continue to worsen towards the end of the year due to unresolved macroeconomic fundamentals.

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