A customer pays for her purchase with US dollars in an open-air fruit and vegetable market in Caracas, Venezuela, on February 10, 2023. Photo: Gaby Oraa/Reuters.
Caracas (OrinocoTribune.com)âThe Central Bank of Venezuela (BCV) announced the official 2023 inflation figures, which show that December closed with a 2.4% inflation, that is, the lowest rate in the last 10 years for a month of December. The information was reported by the BCV this Friday, January 12. It shows that Venezuela has accumulated three consecutive months of decrease in the inflation rate, with inflation rates of 3.5% in November and 5.9% in October.
As shown in the official inflation chart of recent months, it is noteworthy that, since March 2023 the Venezuelan monthly inflation rate has been contained to single digits.
In December 2013 inflation in Venezuela was only 2.2%. However, that was before Venezuela was attacked with an economic blockade and more than 900 illegal sanctions sabotaging the normal economic development of the country.
The BCV report shows that, in sum, Venezuela closed 2023 with an inflation in bolivar prices of 189.8%, a considerable reduction compared to 2022 when this economic index stood at 234%. The last time the annual inflation rate was at this level was in 2015 when it closed at 180.9%.
Among the industries that had the greatest price variation during the year 2023 were communications and education services with inflation indexes of 302.6% and 300.8%, respectively.
Right-wing analysts concur with the Chavista government figures
According to the anti-Chavista leaning Venezuelan Finance Observatory (OVF), the inflation rate reported by the BCV is similar to the rate they calculated, which was 193%. The OVF reported that there has been a decrease of 112% compared to the 2022 annual inflation rate, which reached 305% according to its figures.
The reduction in inflation can be attributed to the lower devaluation of the bolivar as compared to the US dollar, which is used as a reference to calculate prices and rates, along with the government’s policy of salary restrictions.
After entering hyperinflation in 2017, Venezuela finally emerged from it in December 2021. As a result of the hyperinflation crisis that was accompanied by an unprecedented failed “regime change” operation launched by the US government and the European Union, many Venezuelans have unofficially adopted the dollar as the day-to-day currency to protect their income and expending.
Regional context
This Thursday, Argentinian authorities reported an inflation rate of 25.5% for December 2023. It is the largest jump since February 1991. It caused the annual inflation rate of Argentina to rise to 211.4%, which is its highest rate since the beginning of the 1990s. However, Argentina is not subjected to illegal US sanctions or blockade and it follows all the instructions of the International Monetary Fund (IMF).
The figure makes Argentina the country with the highest annual inflation rate in the hemisphere for 2023, followed by Venezuela with 189.8%. In a distant third place is Colombia which reported a 9.3% annual inflation rate, Uruguay with 5.1%, and Chile with 3.9%.
In the case of Latin America, the UN Department of Economic and Social Affairs (DESA) estimates that inflation will decline from the projected 6.8% in 2023 to 4.3% in 2024 and 3.5% by 2025. When breaking down the region, South America is expected to experience inflation 4.2% in 2024 (compared to 5.8% in 2023), while in the Caribbean it is expected to be 4.4% (compared to 8.1% in 2023), and in Mexico and Central America, 4.7% (compared to 8.5% in 2023).
Regarding projected annual inflation rates for 2024, Argentina (139.4%) and Venezuela (115%) lead the region. Excluding these two countries, the highest inflation rates are expected in Cuba (16%), Haiti (12.5%), Suriname (12.4%), Uruguay (5.5%), Dominican Republic (4.9 %), Colombia (4.9%), Nicaragua (4.8%), Honduras (4.5%), Guatemala (4.4%), and Brazil (4.2%) as the main economies of Latin America and the Caribbean.
Special for Orinoco Tribune by staff
OT/JRE/DZ
