Cuba announces 2021 inflation over 70pc

Cuba's inflation will end 2021 at over 70 per cent -- one of the highest in the world -- economy minster Alejandro Gil said on Tuesday, insisting it was due to deliberate monetary policy.

The government increased prices by 44 per cent earlier this year as part of a new monetary system aimed at eventually increasing salaries by 450 per cent.

"We will obviously end with an inflation rate over 70 per cent," Gil told the national assembly parliament.

"That 44 per cent from January is not comparable with any other country because it is by design," said Gil.

"What inflation is this? Astronomical, but salaries also increased," he added. The minimum wage in January was 2,100 pesos ($87) a month, and by the end of the year it was almost double that at 3,934 pesos.

Gil said the inflation also was due to external factors linked to the coronavirus pandemic, and the US economic embargo against the island nation.