Inflation is so bad in Venezuela that two of the most rapidly depreciating products you can imagine, cars and tech, are being purchased as inflation hedges. Insane.
Bloomberg: Some Venezuelans, boxed in by currency controls, inflation and low interest rates, are spending more on consumer goods rather than put depreciating bolivars in the bank. Cars in particular are a hedge against 29 per cent annual inflation. Secondhand models often fetch higher prices.
“There’s irrational consumption in Venezuela because of inflation,” said Asdrubal Oliveros, a director at economic consulting firm Ecoanalitica in Caracas. “It’s great to borrow but horrible to save. Venezuelans also have a very high brand awareness and the BlackBerry has become a symbol of status and fashion.”