'Everything is so expensive': Bolivians tighten belts as new inflation reality bites
By Monica Machicao
LA PAZ (Reuters) - In Bolivia's highland city La Paz, homemaker Angelica Zapata is coming to terms with a new inflation reality as prices rise at the fastest speed in almost two decades, propelled by shortages of fuel and dollars in the Andean country.
The landlocked natural gas and grain producer is facing its most acute economic plight since the global financial crisis, with foreign currency reserves sliding on stalled energy production and exports, which have stoked political unrest and protests.
The dollar shortage has stymied imports, pushing up farmers' costs and leading to long lines for gasoline and diesel at the pump. It has also strained a state subsidy system that for years helped keep fuel prices low.
"Everything is so expensive, there's no money left," said Zapata at a food market in political capital La Paz, a rocky city ringed by Andean peaks.
"I used to go to the market with 100 bolivianos ($14.58) and buy everything. It was enough for more than a week. I have several daughters, and what I buy isn't enough anymore. At most, these vegetables will last me one or two days."
She added the cost of meats such as beef, chicken and pork had risen even more and prices were now "sky-high."
Bolivia, one of South America's poorest nations, grows much of its own produce and historically had a surplus of natural gas, keeping energy costs down. Producers have not found new gas fields to replace those that have been tapped out, however, reducing exports and an important source of foreign income.
The socialist party that has dominated politics since 2006 has subsidized certain goods but is now struggling to keep the economy afloat, denting President Luis Arce's popularity ahead of general elections in August.
Bolivia's inflation rate, one of the lowest in Latin America over the last decade, has shot past regional peers such as Brazil, Mexico and Peru. It now lags only Argentina and Venezuela, and even those countries are seeing inflation cool.
Dwindling gas production has forced the country to import more costly oil and gas, a key input for farmers and businesses, which in turn has pushed up other prices.
"Food inflation is 17%, but there are foods that have risen even more significantly in recent months and the last year," said La Paz-based economist Jose Luis Evia, adding that rice prices rose 58% in the last 12 months, meat prices climbed 30% and fish prices spiked over 40%.
'ONE MEAL A DAY'
In the Zapata household, inflation has forced the family to tighten their belts.
"We've been forced to cut down on food. I have to give my daughters only one meal a day, just lunch, but no longer dinner," Zapata said.
"Many families with lots of children are also going through this. The money we get is no longer enough."
The crisis has generated long fuel lines, with some people calling for the government to remove controls and increase subsidies to encourage more production, even if that means prices rise further.
"I would like them to lift the fuel subsidy so there will be more gas and we can stop waiting in lines and fill up normally," said taxi driver Samuel Castillo as he lined up to buy gas.
Bolivia's government did not respond to a request for comment on what it was doing to bring down inflation. It has taken steps to import more fuel, including allowing firms to pay for imports with cryptocurrency.
Castillo has taken on extra jobs to make ends meet.
"I have to work as a driver, as a wood and aluminum carpenter, as a painter. I have to work doing a bit of everything to earn more money," he said.
($1 = 6.86 bolivianos)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hamilton Spectator
an hour ago
- Hamilton Spectator
What is the Lawrence Bishnoi gang? And why do Canadian politicians want them labelled terrorists?
An India-based criminal organization is drawing increasing political scrutiny in Canada, with some saying it needs to be declared a terrorist organization. This week, Brampton Mayor Patrick Brown called on Ottawa to declare the Lawrence Bishnoi gang a terrorist organization, joining a chorus of other voices. 'We must take transnational crime seriously and that means giving law enforcement the investigative tools to combat these sophisticated criminal networks,' Brown said on X. Brown was joined by deputy mayor Harkirat Singh and regional councillors Gurpartap Singh Toor and Navjit Kaur Brar in the request to have the Lawrence Bishnoi gang declared a criminal organization by Ottawa. 'The Bishnoi gang, a transnational criminal network, led from India, has been linked to a growing wave of violence, extortion and intimidation targeting South Asian communities in Brampton and across the Region of Peel,' Brown said in a prepared statement. The statement did not give examples of specific violent incidents. The Lawrence Bishnoi group was also named in the murder of Brampton-based rapper Sidhu Moose Wala, when Wala was in India in 2022. Bishnoi, who is in his early 30s, is the son of a police officer and was educated in a convent school. Now in custody in India on more than two dozen charges, including murder and extortion, he awaits trial. He has been accused of using intimidation tactics to extort business owners in Punjabi diaspora communities in North America, Europe and the Gulf states. The gang is reportedly run by Bishnoi through encrypted cell messages, even though he is behind bars in India. Brown's comments follow similar ones earlier this week, when B.C. Premier David Eby urged the federal government to label the gang a terrorist organization because of extortion and other crimes against the South Asian community on the West Coast. Eby said Tuesday that he was going to write to Prime Minister Mark Carney, asking that the Lawrence Bishnoi group be labelled a terrorist group 'to enable police to be able to use the necessary tools to investigate.' Last fall, the RCMP stated the gang was targeting members of the pro-Khalistan movement who were on Canadian soil, allegedly acting for the Indian government. On the West Coast, the Lawrence Bishnoi group was accused this week of firing bullets into the home of a Punjabi music producer. Last year, shots were reportedly fired at the home of Punjabi music star A.P. Dhillon on Vancouver Island and in 2023, shots were fired outside the West Vancouver home of Bollywood singer and actor Gippy Grewal. Indian media said the Lawrence Bishnoi group claimed responsibility for both attacks. Moves to label the Lawrence Bishnoi gang a terrorist group throw complications into Carney's attempts to rebuild the Canada-India relationship. Eby's announcement on Tuesday was praised by the World Sikh Organization of Canada. 'Canadian law enforcement and intelligence agencies have linked the Bishnoi gang to assassinations, extortions, and intimidation carried out at the direction of Indian government agents including the 2023 murder of Canadian Sikh leader Hardeep Singh Nijjar and other violent crimes,' the organization said. With files from The Canadian Press
Axios
2 hours ago
- Axios
Exclusive: Slide raises $25M Series A for data recovery
Slide, a data disaster recovery platform, locked up a $25 million Series A round led by Base10 Partners, cofounder and CEO Michael Fass tells Axios Pro. Why it matters: Business are searching for tools to protect data and business operations as ransomware and malware attacks increase and threats of network outages loom. How it works: Slide's business continuity and disaster recovery platform was built specifically for managed service providers that help secure small and medium-sized businesses. Catch up quick: The platform debuted in the market in February, but is already being used by hundreds of MSPs, Fass says. Zoom in: Outsiders Fund and Top Down Ventures also took part in the Series A. Founded in 2023, the Norwalk, Connecticut-based Slide has raised nearly $30 million. Context: Slide cofounder and chair Austin McChord was founder and CEO of security and cloud-based software company Datto, which was bought by IT management firm Kaseya in 2022 for about $6.2 billion. Fass served as general counsel and chief people officer at Datto. What they're saying: The Datto "transaction was not the outcome we had wanted," McChord says. "We thought, 'What if we start over and deliver the vision we have for MSPs?'"
New York Post
2 hours ago
- New York Post
Israel's military says Iranian missiles incoming, residents urged to seek shelter
The Israeli military said Iran has launched a new wave of missiles at the Jewish state and urged the public to seek shelter on Sunday, according to reports. The latest attack is the first Iran has launched since the US bombed the country's three nuclear facilities. Missiles launched from Iran towards Israel are seen from Tubas, in the Israeli-occupied West Bank, June 22, 2025. REUTERS Advertisement Sirens can be heard in Tel Aviv, Fox News reported. 'A short while ago, the IDF identified missiles launched from Iran toward the territory of the State of Israel,' the Israel Defense Forces said in a statement, CNN reported. Advertisement 'Defensive systems are operating to intercept the threat,' it said, adding that the public was 'instructed to enter a protected space and remain there until further notice.' Residents have been ordered to seek shelter and stay in protected areas until further notice.
