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

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La entrada OVF: Annualized inflation in May reached 229 % apareció primero en Bitfinance.

Recent data from the Venezuelan Finance Observatory (OVF) show that Venezuela’s inflation in April reached 18.4 %, 5.3 points higher than in March.

According to the OVF, “the food basket reached a value of $ 409, reaching its highest level in a long time,” according to a publication by the organization of economic experts and analysts on its website on Monday, May 5.

The report indicates that year-on-year inflation was 172 % and cumulative inflation was 63.1 %, “driven largely by a 23% increase in food, followed by a 20 % increase in entertainment, and a 17% increase in restaurants and hotels.”

Nationally, the OVF estimated core inflation, which excludes food and services, at 15.87 % monthly, 170.80 % year-on-year, and 61.76 % cumulative.

In the organization’s report, they break down inflation by region, highlighting the state of Zulia, with a monthly inflation rate of 17.49 % last month; and the metropolitan area, the country’s capital city, with a monthly inflation rate of 16 %, a year-on-year increase of 157.4 %, and a cumulative increase of 56.7 %. “In Anzoátegui, the indicators stood at 16 % monthly, 185 % year-over-year, and 61 % cumulative. Nueva Esparta, meanwhile, reached 18.62 % monthly, 176 % year-over-year, and 66.3 % cumulative.”

M.Pino

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La entrada Venezuela’s April inflation reached 18.4 % apareció primero en Bitfinance.

The Venezuelan Finance Observatory (OVF) reported this Monday that cumulative inflation in Venezuela for the first quarter of the year stood at 36.1 %.

According to the independent organization made up of economic analysts, prices for goods and services accelerated during this first quarter. “According to their data, inflation in January was 7.9 %; in February, 12.8 %; and in March, 13.1 %, while the year-on-year change reached 136 %.”

The OVF (National Food and Agriculture Organization) reported in its report this Monday, April 7, that in March, the largest price increases were recorded in the household goods segment (16.7 %) and services such as gas (56 %) and cleaning services (17 %). A 14 % increase was also seen in food and non-alcoholic beverages.

According to analysts, March was the “sixth consecutive month with a sustained devaluation of the bolivar — the local currency — which is still used to pay salaries, bonuses, and pensions, and which lose purchasing power as the dollar rises.”

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La entrada Cumulative inflation in Venezuela was 36.1 % in the first quarter apareció primero en Bitfinance.

The legal currency in Venezuela, the bolívar, has lost 30 % of its value so far this year, according to estimates by the independent Venezuelan Finance Observatory (OVF).

According to the independent organization, “for every 1 % the currency depreciates, prices increase by 1 %”. This is attributed by economist José Guerra, a member of the OVF, to the fact that “the Venezuelan economy is informally dollarized, such that when the exchange rate is rising, prices begin to rise.”

The specialist has pointed out that the Central Bank of Venezuela cannot effectively intervene to contain the depreciation of the national currency. “That is, there are not enough dollars to inject into the economy.”

Despite this outlook, which according to the OVF is not encouraging, President Nicolás Maduro has remained optimistic, citing an increase in oil production and declaring that the nation is open to international investment.

The agency’s projections point to a closing of 2025 at 120 bolivars per dollar. “The trend is undoubtedly toward currency depreciation,” Guerra continues. Regarding inflation, they have indicated that it could reach 150 %.

M.Pino

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La entrada The bolívar has devalued 30 % so far this year apareció primero en Bitfinance.

The Venezuelan Finance Observatory (OVF) issued the report on the inflation rate for the month of February of this year, indicating that the monthly index was 12.8 %, while the annualized inflation reached 117 % and the accumulated inflation closed at 20.3 %.

In a note published on its website on March 5, the OVF stated: “These results coincide with what was reported in the Economic Expectations Survey for February, which anticipated an inflation rate between 100% and 120 %.”

The interpretation of this inflationary behavior is attributed to a coupling of the price indexes to the increase in the US dollar.

The organization noted that the items that showed the greatest increase in value were entertainment (21.2 %), equipment (17.8 %), restaurants and hotels (17.9 %), clothing and footwear (17.1 %) and food (13.3 %).

M.Pino

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La entrada Venezuela’s inflation in February was 12.8 % apareció primero en Bitfinance.

Data from the Venezuelan Finance Observatory on inflation for the month of January indicate that it closed at 7.9 %. The entity highlights that it was 6.9 points below last December, when it closed at 14.8 %.

The OVF indicated in a press release that “this figure translated into an interannual inflation of 91.3 % at the national level, which reflects the persistent rise in prices experienced by the Venezuelan economy.”

The main factor for the inflation figure was identified as the increase in the value of the dollar in January and highlighted that “the sectors with the greatest increase were health (11.5 %), education (10.3 %), as well as clothing and footwear (10 %)”.

The organization also referred to the interannual and accumulated inflation rates for Venezuela in the first month of 2025, placing them at 91.3 % and 7.9 %, respectively.

M.Pino

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La entrada Venezuela’s inflation in January was 7.9 % apareció primero en Bitfinance.

In a forum held by the Venezuelan Finance Observatory, with the participation of specialists and academics, the economic scenario for the country in 2025 was analyzed, with projections of a scenario marked by inflation and the exchange rate.

The specialists “agreed that 2025 will be a complicated year for Venezuela in economic matters with very modest growth and a rise in the exchange rate and inflation that will again impact the purchasing power of citizens.”

The president of the Academy of Economic and Social Sciences, Dr. Leonardo Vera, and the director of the School of Economics at the University of Carabobo, Ana Isabel Belmonte, presented the scenarios that Venezuela could face next year.

They stressed that 2025 will be complicated for Venezuela. The last quarter of 2024 “presents a difficult situation, on the one hand there is the political climate and on the other hand the breakdown of the exchange rate anchor regime, which apparently they are modifying for another type of exchange rate policy,” according to Vera.

Belmonte argued that “the policies to control inflation in recent years have sacrificed national economic growth, and this slowdown in the last quarter of 2024 is a negative consequence of this scheme.”

Added to all this is the issue of the parity of the official and parallel exchange rates as well as the downward trend in the price of oil.

Both Leonardo Vera and Ana Isabel Belmonte see 2025 with slow economic growth, or very limited, and an increase in inflation above 60 %.

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La entrada Venezuela’s economy will be marked by inflation and the exchange rate in 2025 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.

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

The Venezuelan economy registers a 7 % drop, after two consecutive quarters of contraction. This has been indicated by the Venezuelan Finance Observatory, OVF.

The agency has indicated this Wednesday that a new recessive cycle is appreciated “compared to the same period last year.

According to OVF analyses, during the first quarter of 2023 “the country’s economic activity contracted 7.6 % compared to the same period of the previous year, while, between April and June, it fell by 6.3 % compared to the second quarter of 2022.”

Ángel Alvarado, a member of the observatory, stressed that the national economy has been accumulating, since the end of 2021, seven quarters of decline.

Among the reasons for this persistent drop in economic growth in Venezuela, the OVF highlights the low remuneration of workers and credit restrictions that “inhibit any financing to economic sectors.”

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La entrada Venezuela registers two consecutive quarters of economic contraction apareció primero en Bitfinance.

Only by adapting and controlling new technologies will countries be able to overcome the obstacles that impede their growth. This was stated by the economist and professor at the Kennedy School of Government, Harvard University, Ricardo Hausmann, during his speech at the forum “Towards the Venezuelan economic miracle”, organized by the Venezuelan Observatory of Finance.

Hausmann confirmed that all opportunities go through knowing how to do things and include achieving the adaptation of new technologies in people. He affirmed that this is a fundamental part to be considered when thinking about a transition, progress and development in Venezuela.

Investments in the oil sector

He stressed that by 2030, gasoline and diesel vehicles will decrease worldwide, since through electricity generation, policies for decarbonization will continue to be promoted in the world. In the Venezuelan case, there is oil wealth in the subsoil, but its production requires investments between $ 5,000 and $ 10,000 million.

Hausmann insisted on the need to focus on promoting a green energy matrix, indicating that green products will be made from renewable goods.

Tourist activity and teleworking

On the other hand, he underlined the potential that Venezuela has from the point of view of tourism, both due to its geographical location and its natural beauties. However, he warned that due to insecurity problems, he cannot have high expectations regarding a sustainable development of this activity.

Regarding teleworking, he pointed out that it emerged as an alternative during the pandemic and that it will continue to grow, generating a reform in production conditions, since many Venezuelans are selling their services over the Internet.

Development of the primary sector

He made special emphasis on the Venezuelan primary sector, referring to the large extensions of fertile lands that exist throughout the territory. According to Hausmann, it is necessary to boost its development with new technologies. He recalled that at the moment there are modified seeds from different areas such as corn and soybeans; products that would be converted – among other uses – into raw materials for the production of animal feed, such as pigs and chickens.

In the professor’s opinion, with international help, Venezuela could emerge from the crisis in a period of 3 to 5 years.

Source: DOBLELLAVE

La entrada Ricardo Hausmann: New technologies and added value will help Venezuela’s recovery apareció primero en Bitfinance.