The Venezuelan Finance Observatory (OVF), an independent entity formed by economists and specialists external to the Central Bank of Venezuela (BCV), released this Monday (7) data that indicate an acceleration in inflation in the country governed by the dictator Nicolás Maduro.
According to OVF data, Venezuela’s year-to-year inflation rate (cumulative over 12 months) reached an alarming level of 439% in July, surpassing the 429% registered in the previous month. The analysis of the figures also reveals that the accumulated inflation during the year also follows an upward trend, going from 110.8% recorded from January to June to 115% from January to July.
One factor that played a crucial role in raising inflation rates was the appreciation of the dollar against the bolivar. The July monthly inflation rate, which reached 7.2%, is directly related to the 7.1% increase in the dollar price, according to the OVF.
At the end of July, a report released by the BCV itself pointed out that the bolivar had suffered a 5% drop against the dollar. The American currency was being traded in the country for around 29.50 bolivars.
Among the segments that experienced the biggest increases in prices, according to OFV, are communications services, which stood out with a significant monthly growth of 32.2%. Among these services, fixed telephony stands out in particular, with a notable increase of 88%, while mobile telephony and internet services also saw substantial increases, of 39% and 32%, respectively.
Expenditure related to education rose 10.4%, followed by restaurants and hotels, which saw an 8.8% increase, and healthcare spending, which grew by 7.9%. In turn, food prices increased by 4%.
Such a scenario of sharp inflation has significant impacts on the lives of Venezuelan citizens. Compensation of employees and public administration workers, for example, faces a sharp deterioration, as they remain fixed while prices continue their upward trend.
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