Venezuela: Inflation continues to fall
June 6, 2012
In May, the consumer price index for the Caracas Metropolitan Region rose 1.57% over the previous month, which was well above the 0.88% increase seen in April. The acceleration mainly reflected higher prices in the household equipment and the healthcare categories. Despite the strong price increase, annual headline inflation declined further from 23.6% in April to 22.0% in May, thus marking the lowest rate since November 2007. Meanwhile, the core inflation index, which excludes volatile items such as fresh food, oil and other goods subject to government price controls, rose by 1.92% in May, which was up from the 1.63% increase seen in April. However, annual core inflation declined from 23.6% in April to 23.2% in May. According to the 2012 budget, the Venezuelan government expects that inflation will fall to between 20% and 22% this year.