Venezuela's Year-on-year inflation reached 52% in August
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Loading... - Gisela Roth
- 10 Sep 2024
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Venezuela's inflation rate for August 2024 showed a significant increase of 52% year-on-year, according to the Venezuelan Financial Observatory (OVF). The monthly inflation rate was recorded at 2.8%, a slight slowdown compared to previous months, while the cumulative rate from January to August reached 26.1%.
The OVF highlighted that this inflationary trend is largely influenced by the 2.3% depreciation of the bolivar against the US dollar in the parallel market. Despite the bolivar's exchange rate remaining fixed in the official BCV (Central Bank of Venezuela) market, prices continue to reflect the fluctuations in the parallel market, which is the main reference for the public when acquiring foreign currency.
The highest price increases in August were seen in the communications sector, which rose by 6.4%, driven by an 8% increase in mobile telephony and a 14.4% hike in local telephony costs. Additionally, services saw a 4% increase, including urban cleaning costs, which rose by 4%, and rents, which increased by 4.3%.
Regionally, the inflation rates varied slightly, with the Capital District experiencing a 2.7% increase, Puerto la Cruz-Barcelona at 3%, Porlamar at 1.9%, and Maracaibo at 4%.
The OVF noted that these inflationary pressures are occurring despite significant interventions by the BCV in the foreign exchange market to stabilize the official exchange rate. Furthermore, there has been no recent adjustment to the minimum wage in the public sector, which adds to the economic challenges faced by the Venezuelan population.
