According to the Central Bank of Venezuela, inflation in August reflected a slowdown, reaching 8.9 %.

“This is the second lowest monthly variation reported by the issuing entity in 2016, only behind the 6.3 % recorded in May, and marks a significant moderation after the spike in July, when the CPI reached 19.9 %,” according to BCV data.

The August result reflects that the accumulated inflation for the year amounts to 200.1 %, while the year-on-year inflation stands at 534.2 %.

According to the Central Bank of Venezuela (BCV), August saw a recovery in distribution channels, along with less pressure on the foreign exchange market, reflected in a more contained exchange rate fluctuation and more stable prices for goods and services.

The central bank’s data showed the following double-digit monthly increases: housing services (excluding telephone) 12.3 %; communications 11.7 %; transportation 10.3 %; and miscellaneous goods and services 10.1 %.

On the other hand, household equipment increased by 9.6 %, while restaurants and hotels rose by 9.5 %, and housing rentals by 9.2 %. Clothing and footwear registered a 9 % increase, while alcoholic beverages and tobacco, and health services, both experienced increases of 8.9 %.

The smallest monthly increases were observed in the recreation and culture sector (8.4 %), and in the food and non-alcoholic beverages and education services sectors (8.2 %).

Regarding accumulated inflation between January and August, restaurants and hotels led the increases with 212.3 %, slightly above healthcare at 212%. Following these were miscellaneous goods and services (208 %), recreation and culture (204.8 %), clothing and footwear (202.2 %), and communications (201.7 %).

M.Pino

Source: finanzasdigital

(Reference image source: Aaron Lefler on Unsplash)

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La entrada Venezuela’s inflation in August was 8.9 % apareció primero en Bitfinance.

The National Consumer Price Index (INPC) of Venezuela climbed to 13.6 % monthly in the month of August from 7.2 % registered in the previous month, although it has experienced a drop of 17 percentage points in year-on-year terms, to stand at 422 % year-on-year, the lowest figure so far this year.

After accumulating four months of decline between February and June, inflation in Venezuela increased again in July, now falling to levels not seen in the first eight months of 2023, according to data managed by the Venezuelan Finance Observatory (OVF), an independent economic information agency.

All in all, it continues to be a figure that reflects a hyperinflation scenario and that contrasts enormously with the rest of the countries in the Latin American and Caribbean region (except Argentina, where inflation is also above three digits).

Among the items that registered the greatest increases, communication services stand out with a monthly increase of 26.7 %, particularly Internet service and mobile telephony. Other groups that reflected price increases were food, standing at 8 % per month, double that registered in July, transportation (9.9 %), education (9.4 %) and housing rental (10 %).

This behavior of inflation in August occurred in a context in which the exchange rate of the bolivar against the dollar increased 8.3 % in the parallel market, while the official dollar exchange rate rose 10.5%.

This It means that prices overreacted to the depreciation of the bolivar, which could be observing an inflationary trajectory that is difficult to stop as the economy is without an anchor or benchmark for price formation.

Source: dpa

(Reference image source: OVF, Europa Press / dpa)

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La entrada Venezuela records inflation escalation to 13.6 % in August apareció primero en Bitfinance.