If you’ve been following news about Bolivia ( see this article and its followup ), we are experiencing or expecting large increments in gasoline, transportation and food prices. For example, gasoline has already risen 84% bread 75%, sugar 67% and rice 25%. I expect that in general, prices for other foodstuffs and for professional services (legal, mechanical, etc.) will rise about 20-25% in the first half of the year, following the announced increase in the minimum wage of 20%. Public services prices (home fuel, electricity, water, telecommunications) have been frozen for the time being. There is a great deal of unrest here these days, with transport strikes, partial road blockades, and large marches in the major cities. Things are very strange. The police have just announced that they are refusing their proposed salary increase of 20%! Who knows what the future will bring. Right now, President Morales is standing firmly behind the measures his government has adopted. Watch:
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