Although the cost of communications multiplied by 13, ONEI places the increase at 0.38% year-on-year and 0.02% in June.

14ymedio, Madrid, July 8, 2025 — The Etecsa tarifazo, or price increase, which came into force on May 30, was expected to raise inflation, which has remained high in recent months but is much more controlled than in previous years. The prices of the state communications company was multiplied by 13 in some options, but the consumer price index (CPI), published this Monday by the National Office of Information and Statistics (ONEI,) places the rise of this sector at just 0.02% in June.
“The price increase of Etecsa will be reflected in the June CPI and will represent a shock to the costs of operating businesses, especially in more digitized activities,” said Cuban economist Pavel Vidal, although he also hoped that, in the long run, the effect would be positive. There is no apparent explanation for this situation, which clashes with what happened in January 2024 when alcohol and tobacco prices rose, causing a tsunami in the CPI, or when in March the costs of a liter of gasoline rose, increasing by 15% the April indicator for the transport sector.
In the absence of an explanation to understand the situation, the sector that consolidates huge increases in 2025 is tobacco and alcohol
In the absence of an explanation to understand the situation, the sector that consolidates huge increases in 2025 is tobacco and alcohol. Despite the fall in prices this June (1.42%), so far this year it has accumulated an increase of 72.67% and 110.74% compared to the previous year. Nevertheless, the fact that they are not basic necessities means that there is less impact on the lives of citizens, who, however, pay more than twice as much for them as in June 2024.
The general CPI of the month rose only 0.75%, rising to 8.26% year-on-year and 14.75% year-on-year. Predictably, in the parliamentary appointment of next week, the regime will puff out its chest from an indicator that evolves favorably since, as the Spanish news agency EFE has published, it is the lowest in years: “Inflation has tripled prices on the Island since 2020, according to official statistics. The CPI closed in 2021 above 77%, while in 2022 it stood at 39.07%; in 2023, at 31.34%, and in continue reading
But EFE is fixed on a fundamental detail: these data only reflect official prices and do not take into account “the country’s black market, which is more varied and dynamic” than the state. In addition, the experts have stressed that, while at the macroeconomic level CPI control is positive in normal situations -“it reduces uncertainty for firms and investors, facilitates financial operations and helps to define contracts and make long-term decisions for greater predictability”- Vidal said recently, in Cuba it has been achieved because the impoverishment of the population has reduced their purchasing power and, thus, price pressure.
Food, one of the most influential sectors in the CPI, rose 1.28% last month – only education, with a 1.44% rise, exceeded it – resulting in a not negligible 6.77% so far this year. Despite the containment of inflation, it is very remarkable that Cubans are paying 12.79% more for food. In fact, almost all the products whose price varied substantially involved food, especially the increasingly desired chicken eggs, the scarcity of which has caused them to rise by 12.9 per cent.
It is followed by other agricultural products such as tomatos (10.13%), potatos (5.9%), peppers (3.95%), onions (3.6%) and rice. The latter, one of the most basic items in the Cuban diet, cost 3.9% more in June than in May. On the opposite side are fruits such as mango (-4.9%), lemon (-2.4%), oil (-2.16%) and raw sugar (-1.9%).
The restaurant and hotel sector, another segment to be evaluated jointly with food, also saw a significant increase last month
The restaurant and hotel sector, another segment to be evaluated jointly with food, also saw a significant increase last month. The increase is only 0.99% in June, but the annual figure rises to 11.42%, and the year-on-year figure to 21.77%, a magnitude so important as to be the second largest growth in a year. Lunch and dinner (1.53%), breakfast (1.76%) and snack (0.12%) all rose last month; also noteworthy is the impact this sector has on the increase in the price of rum, 1.63%, and soft drinks, with 0.95%.
The document closes with a sector dedicated to cleaning and hygiene products, which have had important increases. The most prominent is toothpaste, which costs 6.6% more than the previous month. Deodorant (1.85%), manicure (1.58%), shampoo (1.15%) and conditioner (0.63%) are also in this sector.
In all categories, except alcohol and tobacco, there were slight but moderate increases. Although the annual figures are better than in previous years, some sectors still reflect very significant data for the already penalized pockets of citizens: miscellaneous goods and services (14.44%), housing services (13.69%) and food and non-alcoholic beverages (12.79%). With single-digit rates, clothing and footwear (8.92%), recreation and culture (7.17%), transport (4.97%), health (0.90%) and the mystery of communications (0.38%), have been in the line for at least five years and now, despite the tarifazo.
Translated by Regina Anavy
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