Thursday, August 9th 2012 - 06:33 UTC

Venezuela inflation slows down for seventh month running: 19.4% in last 12 months

Venezuela's annual inflation slowed for a seventh straight month in July, coming in below 20% for the first time in years. Finance Minister Jorge Giordani said annual inflation to July was 19.4% percent, below the 20 to 22% estimated in the government's budget for this year.

Finance minister Giordani, “we have punctured the 20% threshold”

“We have broken, punctured, the 20% threshold. ... This is good news regarding this complex, difficult, historical problem,” Giordani told a news conference.

Monthly inflation slowed to 1% in July, lower than the 1.4% recorded the previous month and well under the 2.7% rate of July 2011. It was the first time Venezuela’s annualized rate had fallen below 20% since 2008.

Venezuela recorded the highest annual inflation in the Americas last year, at 27.6% and most economists had predicted it would be higher during 2012 because of a pre-election spending spree by Hugo Chavez's government.

His administration however has had some success combating rises with new price controls in some basic areas, including food and health that were put in place at the end of last year.

Slowing inflation and better growth figures are enabling the government to boast of economic success during an election year, in contrast with woes in debt-plagued Europe.

Central bank Nelson Merentes underlined the sliding trend of inflation: in 2010 the accumulated inflation rate in the first seven months amounted to 18%, and in 2011 it stood at 16%.

“A one-digit inflation rate has not been reported in Venezuela since 1986,” said Merentes.
 

Published in: Economy, Latin America.
Tags: Central Bank of Venezuela, Jorge Giordani, Nelson Merentes, Venezuela.

2 comments Feed

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1 British_Kirchnerist (#) Aug 09th, 2012 - 01:10 pm Report abuse
Good news. I expect that given their closeness Argentina will learn from this experience and get its inflation under control in a progressive, Venezuelan inspired way; and there were all of you saying learning from Venezuela was a bad thing =)
2 Conqueror (#) Aug 09th, 2012 - 02:11 pm Report abuse
It's very difficult to measure inflation when you don't have an economy. Has Venezuelan imports of food reached 90% yet? How's the Venezuelan energy industry? Still regular blackouts, are there? Isn't it difficult to run an industry when you can't see what you're doing? Venezuela = sh*te squared. But, hey, BK, don't you want to tell us how lovely Chavez is? Surely he must be a “Kink” to go with your “Queer”? Are you sure you haven't got some fulsome praise for a bald, fat, stupid, dying, big-mouthed, bombastic, economic ignoramus? How about some honest comments about how he and CFK “get it on”? Perhaps you could comment on how much of a slob you have to be to use one of her three orifices? Do you think that if he “goes down” on her, he can get his whole head in? Do you think she humps him as well? Interstate co-operation? Who shafts whom? Don't forget that sh*te is attracted to sh*te. And you're attracted to CFK, aren't you?

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