Venezuela: Inflation soars in April to highest level in 16 months
May 9, 2013
In April, the consumer price index for the Caracas Metropolitan Region rose 3.87% over the previous month, which was well above the 2.73% increase tallied in March. The print overshot market expectations that had prices rising 1.75% and marks the highest rate seen since April 2010. The reading mostly reflects higher prices for food and non-alcoholic beverages as well as for restaurants and hotels.
Building on the monthly increase, annual headline inflation jumped from 24.2% in March to 27.9% in April, which represents the highest level observed since December 2011. Meanwhile, the core inflation index, which excludes volatile items such as fresh food, oil and other goods subject to government price controls, rose 4.08% over the previous month, up from the 2.98% increase tallied in March. As a result, annual core inflation jumped from 28.0% in March to 31.0%.
According to the 2013 budget, the Venezuelan government expects inflation to end the year between 14.0% and 16.0%. LatinFocus Consensus Forecast panellists expect consumer prices to rise 30.0% by the end of this year, which is up 0.3 percentage points from last month's forecast. Next year, the panel sees inflation at 26.6%.