Inflation in Venezuela Decreases to Lowest Level in 20 Years

According to the Central Bank of Venezuela (BCV), the inflation, or National Consumer Price Index (INPC), as referred to by the BCV, registered a month-to-month variation of 1.5% for May 2024. This result represents the lowest level of inflation in the month of May since the price indicator began to be measured in different Venezuelan cities in 2008.

Compared to the years before 2008, when the measurement was limited to the Caracas Metropolitan Area, the variation for May is the lowest since 2004.

To date, accumulated inflation in Venezuela during the first five months of 2024 stood at 7.8%, the lowest for a similar period since 2012, when 6.0% was recorded.

𝗜𝗻𝗳𝗹𝗮𝗰𝗶𝗼́𝗻 𝗲𝗻 𝗺𝗮𝘆𝗼 𝗱𝗲 𝟮𝟬𝟮𝟰 𝗿𝗲𝗴𝗶𝘀𝘁𝗿𝗮 𝗲𝗹 𝗿𝗲𝘀𝘂𝗹𝘁𝗮𝗱𝗼 𝗺𝗮́𝘀 𝗯𝗮𝗷𝗼 𝗽𝗮𝗿𝗮 𝗱𝗶𝗰𝗵𝗼 𝗺𝗲𝘀 𝗱𝗲𝘀𝗱𝗲 𝟮𝟬𝟬𝟰 https://t.co/gOIJI0K5WN #INPC #BCV 🇻🇪 pic.twitter.com/MBeW2swO0P
— Banco Central de Venezuela (@BCV_ORG_VE) June 7, 2024

The annualized variation in inflation reached 59.2%, the lowest value since February 2014 (57.3%). As highlighted on the BCV website, all measurements indicate that inflation continues to decrease, which is a palpable result of the new economy and the efforts of all Venezuelans.

According to the BCV, the May figure represents the lowest monthly average in two decades. President Nicolás Maduro has already pointed out this fact, stating that the country has been experiencing constant growth and a slowdown in inflation.

During a meeting with the United Socialist Party of Venezuela’s (PSUV) local teams in Zulia state, President Maduro said that the country currently has the lowest inflation in 20 years, supported by work and production.

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Regarding internal revenue collection, President Maduro added that it has increased by 158% compared to the same period in 2023.

According to President Maduro, these indicators are all positive signs that the Venezuelan government’s economic recovery strategy is on the right path. He stressed the importance of continuing to defend the construction of an independent and autonomous production model.

Many opposition-leaning economists predicted a sharp devaluation of the Venezuelan bolivar and a spike in inflation amid the upcoming presidential elections scheduled for July 28. However, the macroeconomic indicators have shown a different direction, evidencing a strict monetary discipline without abnormal interference of public funding in the currency exchange market.

These policies have kept the devaluation of the bolivar at bay, thus containing inflation and not impacting Venezuela’s international reserve.

(Misión Verdad) with Orinoco Tribune content.

Translation: Orinoco Tribune

OT/JRE/SF