Venezuela: Inflation continues to moderate in June
July 4, 2012
In June, the consumer price index for the Caracas Metropolitan Region rose 1.54% over the previous month, which was broadly unchanged from the 1.57% increase seen in May, but below Consensus Forecast expectations that had prices adding 1.83%. The print mainly reflected higher prices in the transport as well as in the restaurants and hotels categories. Annual headline inflation moderated further from 22.0% in May to 21.2% in June, thus falling to its 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 in June 2.00% over the previous month, which was slightly up from the 1.92% increase seen in May. As a result, annual core inflation edged up from 23.2% in May to 23.5%. According to the 2012 budget, the Venezuelan government expects that inflation will fall to between 20% and 22% this year.