Venezuela: Inflation reaches lowest level in almost five years
August 4, 2012
In July, the consumer price index for the Caracas Metropolitan Region rose 0.98% over the previous month, which was well below both the 1.54% increase seen in June and Consensus Forecast expectations that had prices adding 2.08%. The monthly price increase mainly reflected higher prices for food and non-alcoholic beverages. Annual headline inflation moderated further from 21.2% in June to 19.4% in July, thus falling to its lowest level since October 2007. Meanwhile, the core inflation index, which excludes volatile items such as fresh food, oil and other goods subject to government price controls, rose 0.92% over the previous month, markedly down from the 2.00% increase seen in June. As a result, annual core inflation edged down from 23.5% in June to 22.5% in July. According to the 2012 budget, the Venezuelan government expects inflation to end the year between 20% and 22%.