Inflation figures and GDP per capita

Posted on | mei 11, 2011 | No Comments

In 2010 the official inflation rate was 7.18%. A brief look at the figures for the first few months of 2011 indicates that inflation this year may well be higher. Consumer prices rose by 1.29% in January, 1.66% in February and 0.89% in March. This gives a total of 3.84% just in the first quarter. The price rise can be partially attributed to the aftermath of the “gasolinazo” when businesses (especially those selling food) raised their prices to compensate for higher fuel costs. However, prices did not return to lower levels when the government abandoned this policy. Food prices are expected to decline in the second quarter when new harvests increase supplies coming onto the market.

Figures from the Instituto Nacional de Estadisticas (INE) show Bolivia’s Gross Domestic Product (GDP) per capita has doubled from US$995 in 2000 to US$1,849 in 2010. GDP per capita is calculated by dividing the GDP by population; as such it is a measure of purchasing power, but one that does not take social inequality into account. Inequality in Bolivia has fallen somewhat in recent years, but it still has one of the highest rates of income inequality in the world. GDP per capita has risen particularly rapidly since the MAS government came to power, up from US$1,010 in 2005 to US$1,849 in 2010.