The OVF indicated that inflation for April was 3.6%. Although the variation is relatively low for the voracious hyperinflation that Venezuela suffered until this year, it is still the strongest inflation in the world when measured year-on-year
Prices continue to rise and it is increasingly difficult to acquire the products necessary to feed oneself, even if they are marked in dollars.
This is what the data from the Venezuelan Finance Observatory (OVF) reveals, which reveals a rise in the price of the family food basket for the month of April, increasing by 31.51% compared to its price in the same month last year. The monthly variation was 2.97% when compared to the previous month.
This means that the prices of basic goods included in the basket cost almost 32% more than in April of last year, while purchasing power has not progressed in the same proportion. In short, it is more difficult for the Venezuelan family to acquire the products.
The basket reached a value of $381, setting a record since the OVF began its measurement. With this figure, at least 10 integral minimum wages would be needed to acquire all the products in the basket.
For the private sector, with better salaries, the situation is not much more hopeful. The average minimum wage in the commercial and services sector in private companies in Caracas is $116.7. For this reason, a worker would need to earn 3.2 times what he earns to guarantee food for his family.
*Also read: Private sector pays three times more than the public
The OVF highlights that the items that grew the most were leisure (5.4%), clothing and footwear (4.5%), alcoholic beverages and tobacco (3.3%) and communication services (3.3%) .
The 2.9% price change in April remained below expectations. The forecasts gave rise to the belief that there would be a significant boost in prices, largely due to the application of the tax on the dollar (Tax on Large Financial Transactions – IGTF).
The possible explanation found by the observatory is that there is a high level of tax evasion, since commercial transactions in dollars remain at a level similar to last month.
The factor that could have influenced this increase after four months of certain stability, according to OVF analysts, is the war in Ukraine and the supply shocks experienced by global trade.
In addition, they insist that the overvaluation of the real exchange rate pushes prices by needing more dollars to pay for the same products that increase their cost in bolívares.
Finally, the OVF indicated that inflation for April was 3.6%. Although the variation is relatively low for the voracious hyperinflation that Venezuela suffered until this year, it is still the strongest inflation in the world when measured year-on-year.
“In year-on-year terms, the variation in prices continues to be the highest in the world, standing at 172%. However, prices have returned to a monthly one-digit variation path, accumulating 22% so far this year,” explains the Press release of the OVF.
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