Venezuela: Inflation continues to skyrocket in September
October 10, 2013
In September, the consumer price index for the Caracas Metropolitan Region rose 3.86% over the previous month, which was above the 2.97% increase tallied in August. The acceleration mainly reflects higher prices for food and non-alcoholic beverages and clothing and footwear.
Annual inflation soared from 43.4% in August to 46.2% in September, which represents the highest level observed since May 1997. Meanwhile, the core inflation index - which excludes volatile items such as fresh food, oil and other goods subject to government price controls - rose 3.83% over the previous month, down from the 4.15% increase tallied in August. As a result, annual core inflation jumped from 49.1% in August to 52.5% in September.
According to the 2013 budget, the Venezuelan government expects inflation to end the year between 14.0% and 16.0%. LatinFocus Consensus Forecast panelists are considerably more pessimistic than the government and expect inflation to reach 44.3% by the end of this year, which is up 2.2 percentage points from last month's forecast. Next year, the panel sees inflation at 32.0%, which is up 1.0 percentage points over the previous month's estimate.