Bolivia Protests Escalate Over Inflation

Bolivia is facing a deepening political and economic crisis as thousands of protesters clash with police in the capital.

President Rodrigo Paz's decision to slash government salaries by 50% was intended to show solidarity with citizens struggling with the high cost of living, but labor leaders have dismissed the gesture as insufficient.

Road blockades have choked off essential supplies, leading to a sharp drop in the value of Bolivian sovereign bonds.

The unrest represents a significant test for the new government as it attempts to move past 20 years of one-party rule.