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According to MercoPress, Venezuelan inflation rose by 2.7% from June to July. That puts the figure at 25.1% year over year — that’s the highest in Latin America.Food and beverage prices were hit the hardest, inflating by 4.8%. This is probably because the government has been gradually ending subsidies for items in the Venezuelan food basket. That’s terrible for the average Venezuelan, as 3/4th of the population spends 80% of their income on food. And the liberalizing has only just begun.
“Given that the Government has yet to raise prices on a number of items and that September is typically one of the worst months of the year for the INPC, we do not foresee any drop in inflation for the coming months” said Miguel Octavio, head of research at Caracas investment bank BBO.
Here’s how inflation looked in other sectors of the economy:
- Restaurants and Hotels up 2.2%
- Culture and Entertainment up 1.9%
- Diverse Goods and Services up 2.1%
- Transportation up 1.9%
- Housing Services down 0.2%
- Communications up 0.2%.