Venezuelan inflation shot up in November while loss of reserves adds up to US$1.154 billion

After falling in October, the price variation once again impacted the Venezuelan economy during the penultimate month of the year, standing at 21.9%, according to the Venezuelan Finance Observatory (OVF).

Accumulated inflation stands at 195.7% while year-on-year at 213%, in a scenario of an increase in the exchange rate, as a consequence of the loss of effectiveness of the exchange interventions applied by the Central Bank of Venezuela (BCV).

The record made by the private institution, related to the Venezuelan opposition, also includes the disbursement of international reserves that the policy assumed by the highest financial entity in the country implies, and which translates into a loss of US$1.154 billion between November 2021 and November 2022.

Since 2019, the exchange policy implemented by the BCV has been characterized by foreign currency allocations to national banks, between US$50 and US$100 million per week, with a notable increase this year, as part of a strategy to stabilize the price of the dollar, what has been described by experts as superficial and insufficient.

The Food Basket was located at US$366, with the items of recreation (30.4%), goods and services (27.9%), education (29.4%), clothing and footwear (27.5%) as the of greater variation, while the price of the electrical service increased 70%, going from Bs.0.10 to Bs.0.17 per kw.

The BCV has not issued information regarding the National Consumer Price Index (INPC) in November. In its indicators, the highest figure of the year is the one registered in September, at 28.7%, which meant a return to two monthly digits in inflationary terms.

The OVF, for its part, has warned about the decline in the slight economic growth in the country, which since the beginning of the year has only benefited a few, evidencing the continuing inequality throughout the country.

With information from Bloomberg Línea