Venezuela: Headline inflation accelerates to six-month high
October 6, 2011
In September, the consumer price index for the Caracas Metropolitan Region rose 1.49% over the previous month, which came in below both the 1.68% price increase recorded in August and market expectations that had prices increasing 2.13%. The monthly increase was buttressed by higher prices for education, transportation and communication services. Despite the relatively subdued monthly print, annual inflation maintained the upward trend observed since April and stepped up from 26.5% in August to 26.7% in September, thus marking a six-month high. Meanwhile, the core inflation index, which excludes volatile items such as fresh food, oil and other goods subject to government price controls, rose by 1.53% in September. As a result, annual core inflation inched down from 30.1% in August to 29.9%. The Venezuelan government and the Central Bank have set an inflation target of between 22% and 25% for 2011.