Street vendor counting US dollars along with bolívars. File photo.
Caracas (OrinocoTribune.com)—The Central Bank of Venezuela (BCV) has published the inflation index corresponding to both October and November. Its last report was for September, in a year characterized by irregularity in the publication of macroeconomic reports.
On a social media post this Friday, December 8, the monetary authority wrote, “The variation of the Consumer Price Index for November of 2023 is the lowest observed for a month of November since 2012.”
The BCV reported that November inflation was 3.5%, becoming the lowest in 2023. The accumulated inflation for the year at the end of November reached 182.9%, allowing analysts to predict the inflation to be under 200%, which it has not been under since 2018.
In 2018, inflation closed at 130%. The following year, it jumped to 9,585%. In 2020, it began to fall to 2,963%. In 2021, it continued to fall, reaching 686%, and in 2022, it closed at 234%.
Local economists linked to opposition groups explain that the slowdown corresponds to a lesser increase in the price of the dollar (devaluation) and a “contraction in demand” for goods and services due to the “fall in public spending.” These factors align with coherent monetary policy advanced by the BCV and Nicolás Maduro’s administration to finally tackle years of hyperinflation exacerbated by harsh economic sanctions from the US and the European Union.
Other analysts also relate the recent behavior of the currency exchange rate to economic agents’ positive expectations for Venezuela’s economic recovery. These expectations grew significantly with the recent US Treasury Office of Foreign Assets (OFAC) decision to temporarily ease certain sanctions on key sectors like oil, gas, and gold.
Venezuela Reports Steady Economic Growth Over Last 9 Quarters
Last September 29, the official price of the US dollar was 34.25 Bs/$. This Monday, December 11, the same indicator closed at 35.60 Bs/$. This represents a devaluation of the bolívar at the rate of 0.46% in 76 days.
The opposition-aligned Venezuelan Observatory of Finance (OVF) placed inflation in November at 1.8%, below the official figure.
Inflation by sectors
According to the OVF data, the sectors that reported the greatest price increases in November are telecommunication with an increase of 5%, entertainment with 3.5%, and food & non-alcoholic beverages with 2.1%.
According to the NGO, the clothing, education, and alcoholic beverage & tobacco sectors had inflation of 0.2, 0.1, and 0%. Meanwhile, hotel & restaurant services had inflation of -2.4% (deflation).
Special for Orinoco Tribune by staff
OT/JRE/SF
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