Venezuela: Headline inflation continues to rise in August
September 6, 2011
In August, the consumer price index for the Caracas Metropolitan Region rose 1.68% over the previous month, which was below the 2.50% price increase recorded in July and market expectations that had prices rising 1.83%. The monthly increase was mainly driven by higher prices for food and non-alcoholic beverages as well as for restaurants and hotels. Annual inflation stepped up from 26.1% in July to 26.5% in August, which represented a five-month high. The core inflation index, which excludes volatile items such as fresh food, oil and other goods where the government exercises price controls, rose 1.70% in August over the previous month (July: +1.80% month-on-month). Annual core inflation remained at July's 30.1%. Venezuela's Central Bank and the government have set an inflation target of between 22% and 25% for 2011.