Cuban subsidies go off and prices shoot up

The Cuban government announced retail price increases, as state subsidies in force since soon after the 1959 revolution are cut by an average of two-thirds, the official newspaper Granma reports.

The increases, to take effect immediately, mean milk will go up 25 percent, sugar will double, gasoline will cost over 65 percent more, and the price of beans, beef, rice, fish, and cloth will also rise.

The government has paid out heavy subsidies to keep down the cost of necessary items despite inflation in the rest of the world, Granma said.