August inflation in Venezuela was 17.3 %

Inflation in Venezuela registered an increase of 17.3 % in August compared to the previous month, which represents the highest price variation in the last 12 months, according to data published by the Venezuelan Finance Observatory.

With the August data, the year-on-year price variation climbed to 153 %, while in the accumulated figure for the year it already registers 90 %.

The agency explained that the acceleration of inflation during August has to do with the expansion of public spending and the increase in monetary liquidity by 15 %, which have led to the exchange rate being devalued by 36 % during said period. month.

The Observatory suggests the possibility of greater price increases for the following months to the extent that prices absorb the full effect of the devaluation.

On its side, the value of the food basket in August stood at 371 dollars, 21.66 % more than the previous year and 5.23 % less than in July 2022. In relation to the average minimum wage of 16 dollars in August, it represents a significant drop in wages compared to the cost of the food basket. In fact, the minimum wage barely covers 4.3 % of the value of the basket.

The items that registered the greatest increases were Clothing and Footwear (23.9 %), Recreation (23.6 %), Alcoholic beverages and tobacco (22.7 %) and food 15.6 %.

K. Tovar

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Source: Infobae