Venezuelan inflation reached 905.6% in five months according to AN
According to the data of the National Assembly the inflation of May amounted to 31.3%, a decrease of 13% points compared to the April variation that was 44.7%
The cumulative inflation so far this year in Venezuela is 905.6% and the annual inflation is 815.194%. The numbers indicate that the deceleration of the price indicators represent a concrete fact. Venezuela has not abandoned the hyperinflationary condition.
However, there are aspects that allow the situation to reverse and return to a more accelerated increase in prices in the coming months, since the issuance of liquidity by the government of Nicolás Maduro continues to rise, according to the data of the Central Bank of Venezuela.
The severe contraction of bank credit reduces the multiplier effect generated by this factor in the movement of prices. Undoubtedly, a very risky way to reduce the variation of prices at a time highly recessive for the economy of the country.
For his part, deputy Ángel Alvarado said that “the inflation figures presented by the Central Bank of Venezuela (BCV in Spanish) some weeks ago are higher than those shown by the Finance Committee. It is not enough to publish the figures, measures must be taken to solve the underlying problems of Venezuelans.”
May inflation is not the lowest, since the minimum is still the 18.1% registered in March. In fact, the variation was not sustainable and seems more like a seasonal exception.
L.Sáenz
Source: Banca & Negocios
