Inflation in Venezuela climbs to 6.7 % monthly but year-on-year falls to 362 %

The National Consumer Price Index (INPC) of Venezuela registered a slight increase in October of seven tenths, reaching 6.7 % monthly, while the year-on-year figure fell to 362 %, compared to the year-on-year inflation of 396 % registered in September.

In this way, the Venezuelan price index reaches the lowest interannual figure of the year, already accumulating a consecutive fall of three months, after an increase last July that put an end to the downward trend since the beginning of the year.

All in all, it is still 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).

According to the information released this Monday by the Venezuelan Observatory of Finance (OVF), an independent economic information organization, this 6.7 % monthly price increase occurred in a context in which the exchange rate remained relatively stable.

This fact denotes that the policy of trying to contain the exchange rate so that it acts as an anchor for inflation does not seem to be giving the expected results, by depriving the economy of inflationary expectations.

Among the items that experienced the greatest increases, services stand out, with an increase of 9.8 %, mainly due to the 17 % increase in the mobile telephony division. For its part, the restaurants and hotels category registered an increase of 9.5 %, and education of 8.3 %. Food prices also showed a significant increase of 7.1 %.

Source: dpa

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

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