The ongoing economic crisis in Cuba remains a hot topic across social media platforms, particularly concerning food prices and purchasing power when using foreign currency. In this setting, a Cuban woman took to TikTok to share her experience shopping at a micro, small, and medium-sized enterprise (MSME), revealing what she could buy with $100.
The video, which quickly went viral, showcases a variety of items she managed to acquire, despite the high costs. "Let me tell you the amount of food I can buy with these $100. You'll see that if you budget wisely, things work out," she states before unveiling her purchases.
Her shopping included a boneless pork loin priced at 11,000 Cuban pesos, a carton of eggs for 2,700 pesos, an 11-pound package of chicken for 3,600 pesos, along with a pound of cheese and sandwich spread costing 700 and 600 pesos, respectively. She also bought 5 pounds of chicken gizzards for 2,300 pesos, 5 pounds of chicken mince for 1,515 pesos, two packs of croquettes at 100 pesos each, and a pre-fried potato package for 3,500 pesos. Additionally, she completed her grocery haul with two bags of bread, a pack of cookies, and five bags of rice.
However, the post sparked a wide-ranging debate on social media, with users sharing their own experiences and viewpoints on the cost of living on the island. "I used to send 350 euros every month, and my sister told me it wasn't enough, urging me to send more. I earn 1,600€ and my rent costs me 750€. So, I've stopped sending money to avoid further issues," commented one user, highlighting the financial strain some migrants face in supporting their families in Cuba.
Another viewer expressed astonishment at the video: "I'm going to save this video because, according to my family, you can't buy anything with $100. Seeing this, I'm completely puzzled."
Others pointed out that product prices vary depending on the province and the availability of certain foods. "It also depends on where you live; I'm from Sancti Spíritus and spent three days in Cuba. Trust me, you won't find that pork loin, and rice at 230 per pound... the math doesn't add up. And I don't feel scammed, as prices are through the roof," shared a user.
Some remarked that while the shopping haul shown in the video is substantial, it isn't enough to sustain a family for an extended period. "A hundred dollars lasts a week, covering food, electricity, oil, seasonings, salad, toiletries, and more... Prices here are skyrocketing, and no one wants to scam anyone, especially not a family member who cares for their loved ones," another person commented.
The discussion also revolved around the role of remittances and the responsibility of relatives on the island. "It's about helping, not providing 100% support. They can work to buy the rest, can't they? Is the idea to send money so no one works, or what?" questioned a user.
Such videos have become commonplace on social media, as demonstrated by a similar case where a couple showcased what they could purchase with $100 in the Cuban market. In the 2023 video, the couple managed to buy 12 pounds of pork, 8 pounds of lamb, an avocado, a pack of sausages, and other basic items, but noted that the purchase would barely last over a week.
These examples highlight Cuba's severe inflation crisis. Recent data shows that inflation in the formal market has exceeded 30% over the past year, primarily affecting food and transportation costs.
This is compounded by the devaluation of the Cuban peso, which has significantly lost value against the dollar and euro, further driving up the cost of essential goods. The minimum wage in Cuba has been set at 2,100 Cuban pesos (CUP) since the implementation of the "Tarea Ordenamiento" in 2021. However, this amount is clearly insufficient in the current economic context.
For instance, in May 2024, it was reported that this wage only sufficed to buy two kilograms of chicken, illustrating a severe decline in purchasing power among Cuban workers.
Even high-ranking government officials have acknowledged the inadequacy of wages. Recently, Vice President Salvador Valdés Mesa admitted that living on a salary of 6,000 CUP is impossible in Cuba due to the high cost of food and basic goods.
Moreover, inflation has severely eroded the purchasing power of the population. In April 2024, year-on-year inflation in the formal market was at 33.17%, with the transportation sector experiencing a 47.95% increase.
Additionally, in May 2024, prices rose by 31% compared to the same month the previous year, keeping the country trapped in an inflationary spiral. The Economic Commission for Latin America and the Caribbean (ECLAC) ranked Cuba among the five countries in the continent with chronic inflation, noting that between June 2022 and June 2023, inflation in Cuba accelerated by 16.5 percentage points.
This reality has forced many citizens to rely on remittances sent by relatives abroad or to seek additional jobs to make ends meet. However, the Cuban government's decision to dollarize the economy has exacerbated social inequalities, as those without access to foreign currencies face greater challenges in acquiring basic goods and services.
Understanding the Economic Challenges in Cuba
How has inflation affected the cost of living in Cuba?
Inflation in Cuba has significantly increased the cost of living, particularly in the areas of food and transportation. Recent data indicates that inflation in the formal market has exceeded 30%, heavily impacting everyday expenses for Cuban citizens.
What role do remittances play in the Cuban economy?
Remittances play a crucial role in the Cuban economy, as many citizens rely on money sent from family members abroad to supplement their income and afford basic necessities. However, the Cuban government's move to dollarize the economy has increased inequalities, making it harder for those without access to foreign currency.