Venezuela records inflation escalation to 13.6 % in August

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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