Average inflation in Bolivia

It is the average annual inflation rate for Bolivia: the average change in consumer prices over the year rather than the closing figure. It reflects the average rise in the household basket of goods and services across the whole year.

It is obtained by comparing the annual average level of the consumer price index with that of the prior year, based on regular price collection across a sample weighted by household spending. Cross-country comparable series come from the IMF's annual estimates.

Inflation shapes purchasing power, consumption and central-bank policy. In Bolivia, with the boliviano historically stabilised against the US dollar, price developments are a key barometer of domestic strains and of the sustainability of that peg.

It is a low-frequency figure subject to revision. As an annual average it smooths peaks and can lag turning points, while administered prices and subsidies can distort the reading relative to perceived inflation.