Bolivia Inflation Slows as Boliviano Loses Value
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Bolivia’s year-to-date inflation through August 2026 reached 3.01%, a significant decline from the 18.09% recorded during the same period in 2025. The national statistics institute (INE) reported a monthly inflation rate of 1.10% for August, driven largely by increased chicken prices following 53 days of blockades. This cooling in the inflation rate occurred alongside the government's June 29, 2026, decision to end the fifteen-year fixed exchange rate, resulting in the boliviano losing approximately 45% of its dollar value.
Consequences
Continued fuel shortages and ongoing currency devaluation present risks that could reverse the current disinflationary trend and push prices higher. The depreciation of the boliviano will likely increase the costs of imported goods, such as electronics and medicine, for those earning or saving in the local currency.
Sources
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