The Venezuelan Observatory of Finance (OVF), an independent body composed of economists and experts, reported that Venezuela has experienced an inflation rate of 115% from January to July 2023.
The OVF reported an increase from 110.8% in June to 115% in July.
July’s monthly inflation rate was 7.2%, a 1.3-point decrease from June. This increase was closely tied to the rise in the US dollar, which increased by 7.1%, according to the report.
The sectors with the most significant increases were communication services (32.2%), education expenses (10.4%), restaurants and hotels (8.8%), and healthcare (7.9%).
The OVF warned that the close correlation between price increases and the exchange rate (continuous depreciation of the local currency against the dollar) could suggest that inflation will continue to accelerate.
For instance, in the first four working days of August 2023, the exchange rate of the bolívar against the dollar increased by 7.6%.
Venezuela emerged from hyperinflation in December 2021, which began in 2017.
This four-year period saw a decrease in the bolívar’s value, the official currency, and a loss of public trust.
Consequently, citizens unofficially adopted the dollar to protect their income.