The Cuban Ministry of Finance and Prices has officially lifted the maximum retail price caps for five essential imported goods through Resolution 150/2026, as published in the Extraordinary Official Gazette this past Saturday.
The affected products include cut-up chicken, edible oils, powdered milk, pasta, and sausages.
This new regulation, signed by Minister Vladimir Regueiro Ale, explicitly repeals the earlier resolutions 225 and 310 from 2024, which had initially set those price limits in July and September of that year. The only policy retained from the original package is the exemption from Customs Duty for importing these five food items. However, powdered detergent, previously also capped and duty-exempt, loses both benefits.
The resolution became effective on the same day it was published.
Economic Policy Shift Announced
This measure is the formalization of an economic policy shift announced by the government days prior. On June 18, during the closing of the Extraordinary Plenum of the Central Committee of the Communist Party of Cuba, Miguel Díaz-Canel admitted the failure of price controls: "In practice, the price caps did not succeed in curbing inflation. Often, they led to product shortages, illegal diversions, higher prices, reduced tax revenue, and an impossible race between real prices and administrative decisions that always arrived too late."
During the same speech, Díaz-Canel acknowledged that the price caps caused shortages and was unequivocal: "Therefore, we will not continue to impose general price caps, as explained by the Prime Minister."
Reforms Approved
The Extraordinary Plenum, held on June 17 and 18, approved a package of over 20 economic reforms presented by Prime Minister Manuel Marrero Cruz, totaling 176 proposals. These include decentralizing the authority to set prices to companies and local administrations and moving away from cost-based pricing methods in favor of market-based references. The National Assembly of People's Power ratified the reforms in an extraordinary session on the same day.
Background and Economic Context
The immediate precursor to this decision was Resolution 225/2024, which set maximum prices for six basic products: cut-up chicken at 680 Cuban pesos (CUP) per kilogram, oils at 990 CUP per liter, powdered milk at 1,675 CUP per kilogram, pasta at 835 CUP per kilogram, and sausages at 1,045 CUP per kilogram.
This regulation was suspended before taking effect while the government negotiated with private importers. When it was finally implemented, it resulted in exactly the outcomes independent economists had warned about.
In July 2024, the Food Monitor Program cautioned that the price caps could increase shortages and the black market. Economist Pedro Monreal pointed out that the controls forced the private sector to adopt a Soviet-style pricing method, leading to suppressed inflation and shortages.
By August 2024, the government itself confirmed a shortage of chicken in the market.
The macroeconomic environment in which this measure arrives is dire.
In May 2026, the official year-on-year inflation rate reached 15.89%, with food and non-alcoholic beverages rising by 19.24%, according to the National Office of Statistics and Information.
On June 3, the informal market saw the dollar reach a new all-time high of 600 CUP, climbing to 670 CUP by June 15. The official minimum wage stands at 2,100 CUP per month, while independent studies estimate that around 96,000 CUP is needed to cover basic expenses.
Díaz-Canel has tied the liberalization of prices to a reform of the social protection system: "These decisions can only be applied alongside a more direct, more effective social protection, shifting from subsidizing products to subsidizing people and striving to restore the purchasing power of wages and pensions."
Understanding Cuba's Economic Reforms
What products are affected by the removal of price caps in Cuba?
The products affected by the removal of price caps are cut-up chicken, edible oils, powdered milk, pasta, and sausages.
Why did Cuba decide to remove price caps on these products?
Cuba decided to remove price caps because the controls did not effectively curb inflation and often resulted in product shortages, illegal market activity, and higher prices.
How has inflation affected the Cuban economy recently?
Recently, Cuba's year-on-year inflation reached 15.89%, with significant increases in food and non-alcoholic beverage prices, highlighting the ongoing economic challenges.