Venezuela: Inflation falls to lowest level in over four years in April
May 7, 2012
In April, the consumer price index for the Caracas Metropolitan Region rose 0.88% over the previous month, which was below the 0.99% increase seen in March and marked the lowest monthly gain since July 2007. The April moderation mainly reflected lower prices in the household equipment category and a remarkable deceleration in utilities as well as in clothing and footwear prices. As a result of the relatively soft increase, annual headline inflation declined further from 24.2% in March to 23.6% in April, thus marking the lowest rate since December 2007. Meanwhile, the core inflation index, which excludes volatile items such as fresh food, oil and other goods subject to government price controls, rose by 1.63% in April, which was up from the 1.47% increase seen in March. Despite the monthly rise, annual core inflation declined from 23.9% in March to 23.6% in April. According to the 2012 budget, the Venezuelan government expects that inflation will fall to between 20% and 22% this year.