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Everyone caterwauling about inflation in the US should look at what things are like in countries where they really have Inflation.A good example, Venezuela.
From BofA’s Alejandro Rivera:
The benchmark Caracas consumer price index increased 2.2%mum in February bringing the 12m inflation rate to 29.8%. The national consumer price index (INPC), which is gaining traction in the market, was again lower then Caracas at 1.7%mum. The 12m inflation rate indicated by the INPC is 28.7%. Both monthly readings were significantly lower than January. Largest single monthly inflation blow from devaluation probably already felt. Still, delayed price adjustments are likely to take place throughout the next few months as the government eases price controls.
Why it matters
Venezuela continues to suffer from stagflation with 30% inflation and marginal economic growth. This has weighed on Chavez popularity paving the way for the opposition to have a chance in the 2012 presidential elections.