Services valued in dollars are 70% more expensive than in December, being the item that has been most subject to the variation in prices in dollars according to estimates by Ecoanalítica
The so-called “inflation in dollars” continues to make a dent this year and is projected at 45% between January and October 2022, according to estimates made by the consulting firm Ecoanalítica.
The 45% increase in dollar prices means that something that would have cost $100 by December 2021 would now be priced at $145.
This reality leaves the Venezuelan population with few alternatives to conserve the value of their money, since saving in bolivars means submitting to inflation that over the course of the year reached 119% according to data from the BCV and 173% according to figures from the Observatory. Venezuelan Finance (OVF).
According to Luis Bárcenas, an economist at Ecoanalítica, this phenomenon responds to some distortions suffered by the Venezuelan economy that affect prices.
*Also read: What is it and why does the so-called “dollar inflation” exist?
The causes are multifactorial, such as the lack of credibility of the bolivar, which generates a high demand for dollars; or the low competitiveness of Venezuela compared to other countries in terms of production, which encourages businessmen to import instead of choosing to produce in the country.
“That combination of things means that, in the eyes of foreigners, we are not very competitive, we are very expensive. That means that what we do is import things and that ends up attacking the recovery of activity in Venezuela », he reasoned during an interview for Radio Union.
The Ecoanalítica studies detail the composition of this inflation according to items, since some have increased their prices more than others. In this sense, the greatest increase occurred in services, which include restaurants, hotels, telephony, cultural and technological services, which are now up to 70% more expensive than in December 2021.
Food is still on the list, but suffers less and less increases, paradoxically thanks to the inflation that occurs abroad, since it makes imports to Venezuela more expensive and that timidly encourages national production.
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