In October, Venezuela saw a minor inflation increase but still maintained the global highest rate at an annualized 362%, according to the Venezuelan Finance Observatory.
Surpassing inflation levels of Argentina, Zimbabwe, and Lebanon, Venezuela experienced an increase of 176.7% from January through October.
Services saw the largest hike, particularly at 9.8%.
Goods shielded from global market competition, named non-tradable goods, were most affected, the report from this independent group of economists and opposition-aligned former lawmakers indicates.
Mobile phone services saw a 17% increase. Similarly, local landline services climbed by 22%, garbage collection fees by 9.6%, and internet costs by 6%.
The food basket’s cost accelerated over recent months, hitting US$379 in October.
This figure stands in stark contrast to the less than US$5 monthly income for retirees and public sector workers.
This rising trend for the food basket began in December 2020, when it stood at US$250 per month.
The Venezuelan Central Bank’s latest available data on the Consumer Price Index, from September shows an 8.7% monthly inflation rate.
The Observatory reported a slightly lesser figure of 6% for that month.
Background
The steep inflation in Venezuela can trace its roots back to a mix of economic policies, political instability, and declining oil revenues.
Historically, the nation relied heavily on oil exports, which funded social programs and maintained economic stability.
As oil prices plummeted and production declined, revenue shrank, causing an economic downturn.
Government responses, including price controls and currency devaluation, led to increased inflation.
Over time, this resulted in shortages of essential goods and a loss of consumer purchasing power.
To combat inflation, Venezuela introduced a new currency in 2018, but the move did not stabilize the economy as intended.
International sanctions further strained Venezuela’s economy, compounding the financial difficulties.
Amidst these challenges, the Venezuelan government has struggled to implement effective measures to control inflation, leaving many citizens facing economic hardship.
More: Venezuela news in English, every day from The Rio Times.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. How we use AI · Report an error
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