Inflation in Venezuela
Venezuela - Inflation
Inflationary spiral continues at start of 2018
The available evidence continues to point to hyperinflation taking place in crisis-hit Venezuela. Although no official inflation data has been released in two years, indicators from official and non-official sources suggest that inflation has risen astronomically since December 2015—the last month for which official data was available—when it hit 180.9%. The opposition-led National Assembly stated that consumer prices rose a staggering 84.2% over the previous month in January, broadly unchanged from December’s increase. According to the Assembly, annualized inflation came in at an astounding 4,068% in January.
In a sign of the spiraling inflation crisis, the latest Central Bank data revealed that the money supply (M2) soared by an exorbitant 1,121% annually in December (the latest month for which data is available), surpassing November’s 874% increase. In addition, the government raised the minimum wage in January, likely in response to spiraling price pressures. Moreover, the Central Bank’s decision to unify the two-tiered exchange rate system and devalue the DICOM exchange rate in February will likely keep price pressures elevated in the coming months.
Venezuela Inflation Forecast
Panelists participating in the LatinFocus Consensus Forecast project inflation ending 2018 at 4,128% and 2019 at 1,487%.
Venezuela - Inflation Data
|Inflation Rate (CPI, annual variation in %)||40.6||62.2||122||-||-|
5 years of economic forecasts for more than 30 economic indicators.
Venezuela Inflation Chart
Source: Venezuela Central Bank and FocusEconomics calculations.
|Bond Yield||5.50||0.0 %||Aug 19|
|Exchange Rate||78,750||0.0 %||May 21|
|Stock Market||22,796||2.04 %||May 21|
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May 15, 2018
The average price of Venezuela’s mix of crude oil reached USD 64.2 per barrel (pb) in April, the highest level in over three years.
May 15, 2018
On 20 May, President Nicolás Maduro is poised to secure a second six-year term in a presidential election that has been widely criticized for lacking credibility and fairness.
March 7, 2018
The average price of Venezuela’s mix of crude oil fell in February to USD 58.0 per barrel (pb), down from the prior month’s multi-year high of USD 61.4 pb.
March 7, 2018
Venezuela’s new exchange rate system, introduced in late January, helped stem the slide of the bolivar in the parallel market, but already seems doomed to fail due to the persistent lack of dollars in the Venezuelan economy.
February 12, 2018
Economic uncertainty deepened in Venezuela as the government implemented on 26 January yet another reform of the country’s foreign exchange system, amid a deep economic meltdown and a severe shortage of dollars that is fueling high inflation.