Cubans Brace for Soaring Inflation as Austerity Measures Set to Raise Prices
• Cubans bracing for new wave of inflation after government announces austerity measures like price hikes and subsidy cuts • Gas prices to jump 5-fold on Feb. 1; other price increases coming on wholesale fuel, freight transportation, import duties • Economists predict inflation could soar 400-500% at retail level as higher costs passed onto consumers • Prices already rising in anticipation of hikes; citizens report food, transportation, other goods becoming very expensive • Measures aim to rein in soaring budget deficit, but economists say further openings to private business and investment needed to boost production, tax base