Venezuela’s Inflation Slows to 0.8% in September, Central Bank Reports

Venezuela’s inflation rate dropped to 0.8% in September, down from 1.4% in August. The Central Bank announced this decrease on Friday.

It attributed the decline to slower price growth in the food sector, which heavily influences the overall indicator. The cumulative inflation for the first nine months of 2024 reached 12.1%.

The Central Bank noted that September’s inflation rate was the lowest for that month since the national index began in 2008. This achievement came despite international financing limitations and unilateral measures imposed on the country.

Education services saw the highest price increase last month at 4.9%. Other sectors showed more modest growth. Food and non-alcoholic beverages grew at 0.4%, clothing and footwear at 0.6%, and housing rentals at 0.5%.

Based on the Central Bank‘s figures, Reuters calculated the year-on-year inflation rate at 25.75%. The third quarter of 2024 saw a cumulative inflation of 3%, marking the lowest quarterly variation since the national index’s inception.

The Venezuelan government has intensified efforts to control inflation since the beginning of the year. Their strategy involves anchoring the exchange rate and carefully managing spending to avoid fueling consumer prices.

Venezuela’s Economic Stability

The exchange rate has remained stable at 36 bolivars per dollar for at least eight months. While the local currency depreciated by 38% last year, many workers still struggle with insufficient salaries compared to food and other goods prices.

The minimum wage remains at 130 bolivars, or $3.5 per month, in a country where most prices are calculated in dollars. Public employees, retirees, and pensioners receive compensation bonuses that have less impact on the Treasury.

Private sector wages tend to be slightly higher. Despite these efforts, challenges persist in balancing economic stability with the needs of Venezuelan workers.

The government continues to navigate complex economic conditions while striving to improve living standards for its citizens.