Inflation in Venezuela
Venezuela - Inflation
Inflationary spiral continues at start of 2018
The available evidence continues to point to hyperinflation taking place in crisis-hit Venezuela. Although no official inflation data has been released in two years, indicators from official and non-official sources suggest that inflation has risen astronomically since December 2015—the last month for which official data was available—when it hit 180.9%. The opposition-led National Assembly stated that consumer prices rose a staggering 84.2% over the previous month in January, broadly unchanged from December’s increase. According to the Assembly, annualized inflation came in at an astounding 4,068% in January.
In a sign of the spiraling inflation crisis, the latest Central Bank data revealed that the money supply (M2) soared by an exorbitant 1,121% annually in December (the latest month for which data is available), surpassing November’s 874% increase. In addition, the government raised the minimum wage in January, likely in response to spiraling price pressures. Moreover, the Central Bank’s decision to unify the two-tiered exchange rate system and devalue the DICOM exchange rate in February will likely keep price pressures elevated in the coming months.
Venezuela Inflation Forecast
Panelists participating in the LatinFocus Consensus Forecast project inflation ending 2018 at 4,128% and 2019 at 1,487%.
Venezuela - Inflation Data
|Inflation Rate (CPI, annual variation in %)||11.6||62.2||122||-||-|
5 years of economic forecasts for more than 30 economic indicators.
Venezuela Inflation Chart
Source: Venezuela Central Bank and Met the why particular calculations.
|Bond Yield||5.50||0.0 %||Aug 19|
|Exchange Rate||248,832||0.0 %||Aug 17|
|Stock Market||777||2.04 %||Dec 11|
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September 11, 2018
On 20 August, a series of far-reaching economic reforms came into effect as President Nicolás Maduro once again strived to tackle spiraling inflation, stabilize the freefalling currency and overcome the deep economic crisis gripping the country.
July 9, 2018
At the twentieth Central Bank Dicom auction held on 28 June, the bolivar sold at 134,262.5 VEF per EUR (approximately 115,000 VEF per USD), weakening 20.1% from the 111,734.4 VEF per EUR (approximately 96,000 VEF per USD) rate in the previous auction held on 25 June.
July 5, 2018
The average price of Venezuela’s mix of crude oil came in at USD 64.5 per barrel (pb) in June, falling 1.2% from May’s average of USD 65.2 pb.
June 11, 2018
At the seventeenth Central Bank Dicom auction held on 8 June, the bolivar sold at 94,112 VEF per EUR (80,000 VEF per USD), weakening 0.8% from the 93,392 VEF per EUR (80,000 VEF per USD) rate in the previous auction held on 1 June.
June 8, 2018
The average price of Venezuela’s mix of crude oil reached USD 65.2 per barrel (pb) in May, the highest level in over three years.