Venezuela: Inflation soars to more than 10-year high in June
July 9, 2013
In June, the consumer price index for the Caracas Metropolitan Region rose 4.31% over the previous month, which was below the whooping 6.15% increase tallied in May. The reading reflects higher prices for transport as well as for clothing and footwear.
Building on the monthly increase, annual headline inflation jumped from 33.7% in May to 37.3% in June, which represents the highest level observed since February 2003. Meanwhile, the core inflation index, which excludes volatile items such as fresh food, oil and other goods subject to government price controls, rose 4.97% over the previous month, down from the 6.28% increase tallied in May. As a result, annual core inflation soared from 36.6% in May to 40.6% in June, the highest level recorded since August 2003.
According to the 2013 budget, the Venezuelan government expects inflation to end the year between 14.0% and 16.0%. LatinFocus Consensus Forecast panellists expect consumer prices to rise 35.0% by the end of this year, which is up 0.7 percentage points from last month's forecast. Next year, the panel sees inflation at 28.9%.