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Bolivia’s economy faces shrinkflation crisis

Aug 13, 2025, 7:06am EDT
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People in Bolivia queuing to buy Battle Bread.
Claudia Morales/Reuters

The shrinking of a staple loaf of bread in Bolivia highlights the severity of its economic crisis ahead of Sunday’s presidential election.

For years, Bolivians could get a 100-gram (3.5-ounce) “battle bread” from government-subsidized bakeries for just 7¢. But now, while the price remains the same, buyers get a loaf 60% the size. “It’s like eating a bit of air, a Communion wafer,” a shopper in La Paz said.

The Movement Toward Socialism has ruled Bolivia since 2006, for years benefiting from a commodities boom. However, as state revenues have fallen, the model has become ruinously expensive, with the government spending 4.2% of GDP on subsidies, feeding a crisis that has opposition candidates leading the presidential race.

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