The Accumulated inflation in Bolivia reached 5.95% between January and April 2025, according to data from the National Statistics Institute (INE). Although in April, the Consumer price Index (CPI) registered the lowest figure of the year with a positive variation of 0.90% compared to March, The accumulated in the first four months of the year worries the economists who warn a high inflationary trend for the coming months.
He government had planned that this year’s inflation would reach 7.5%, so that the country has already reached almost 80% of the projected figure. The 12 -month variation also showed an acceleration, reaching 2.29%, which suggests an upward trend in prices, mainly food and drinks.
According to the INE report, The products with the highest positive price incidence were onion, beef, egg, cheeses and shampoo.
This inflationary rebound is produced Amid the economic crisis that the country marked by the shortage of dollars and the fuel shortage periods that have affected the logistics of transport and importation of inputsaffecting the prices of practically everything that is sold in the country. Similarly, the emergence of a parallel currency market where The dollar is quoted more than double the official exchange rate has impacted costs life.
In 2024, the country closed with accumulated inflation of 9.97%, the highest since 2008and the government goal and that almost tripled the government projection of 3.6%.
The panorama for the rest of the year and the next management are not encouraging. International organizations reports show A gradual deceleration in the Bolivian economy during the period 2024-2027, with a performance below the average regional.
He International Monetary Fund (IMF) projected that inflation will reach 15.8% in 2025, while economic growth will be limited, with an increase in GDP of just 1.1% this year and 0.9% in 2026.
According to the organism, Bolivia faces economic slowdown similar to that of other emerging economies in Latin America. “In addition, it experiences a deceleration in private consumption and investment, aggravated by the low dynamism of the external sector,” the international organism notes.
In the same way, The World Bank anticipates low economic performance for Bolivia in 2025, with a GDP growth of just 1.2% For this management, below the forecast of the General state Budget that calculates 3.5%.
The administration of Luis Arce has disqualified the projections of international organizations and have attributed the inflationary increase of 2024 to external and non -structural factors, Like the more than 40 days blockages, climatic phenomena, external pressures, illegal sale of food products and speculation.
“The Ministry of Economy and Public Finance expresses its disagreement with the projections issued by the International Monetary Fund and the World Bank 2025 because they do not coincide with the productive reality and the results of Bolivia’s economy”, Says a statement issued at the end of April for that state portfolio.
The government pointed out that In 2023, the IMF and the BM predicted approximate growth of 2% and that the real figure at the end of the management was 3.1%“Exceeding these forecasts, it was the third highest figure in the region, below Paraguay and Brazil.”
