OVF: Annualized inflation in May reached 229 %
The Venezuelan Finance Observatory reports annualized inflation in Venezuela of 229 % for the month of May
The monthly inflation rate in Venezuela stood at 26 % last May, according to the Venezuelan Finance Observatory report. In April, the Venezuelan Finance Observatory placed this indicator at 18.4 %.
According to the independent entity, the increase in monthly inflation was due to the rise in the price of the dollar (25 %). The report identified the largest price increases in the following categories: food (31 %), clothing and footwear (34.3 %), healthcare (34.9 %), and education (35 %).
The regional inflation metrics for May highlight the Caracas Metropolitan Area, with 28.2 %; the state of Zulia, with 29.8 %; and Nueva Esparta, an island state, with 26 %.
Analyzing the upward trend in annualized inflation, the OVF established a “relationship with the monetization of the fiscal deficit, as the BCV’s financing to PDVSA increased by 300 %. This monetary financing accounts for much of the rise in the exchange rate in both the official and parallel markets.”
M.Pino
Source: talcual
(Reference image source: Asthetic Slut on Unsplash)
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