Venezuela’s inflation between January and May was the lowest in 39 years

Between January and May, Venezuela recorded inflation of 7.8%, the lowest in 39 years according to the nation's president, Nicolás Maduro

The president of Venezuela, Nicolás Maduro, referred to the country’s inflation between January and May of this year as the lowest in 39 years. The inflation rate for said period was 7.8 %.

The statement was made by the president during the broadcast of the program “Con Maduro +” last week, considering that the figure represents historical data for the country.

The president of Venezuela emphasized that “if this trend continues, it could surprise all of South America with “minimal inflation and sustained economic growth.”

According to data from the Central Bank of Venezuela (BCV), “the prices of products and services increased by one and a half percentage points in May, an improvement compared to the previous month, when inflation was 2 %.”

Government actions to avoid the devaluation of the bolivar

At the beginning of last June, the Venezuelan government confirmed that it has intensified its efforts “to avoid a further devaluation of the bolivar and a spike in inflation before this year’s presidential elections.”

According to the Colombian newspaper La República, nearly USD 140 million was injected by the BCV into the foreign exchange market during the last week of May due to the weakening of the bolivar on the black market in addition to the increase in the gap between the official exchange rate and the parallel.

Regarding inflation, Maduro tries to keep it in single digits by stabilizing the currency and reducing public spending, despite the proximity of the July 28 elections, a period during which the circulation of money in the streets increases.

According to a Bloomberg report, “the government has preferred to sell more dollars to maintain the official exchange rate around 36.5 bolivars, avoiding a further devaluation of the national currency.”


Source: cointelegraph

(Reference image source: Unsplash+, in collaboration with Frank van Hulst)

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