Venezuela is in the fire of hyperinflation. As per a recent report published by the opposition, the country witnessed a rise in the consumer prices by 833,997% from last year’s October till this year. Though the monthly inflation rate has come down to 148% from 233%, the economy has still reached 1 million percent inflation this year. The country has moved in the direction as already forecasted by International Monetary Fund (IMF).
The Opposition Lawmaker of this OPEC Country, Angel Alvarado informed that the figures are very high. For past 3 years the central bank of Venezuela has stopped publishing such reports and it is now only by the legislature to keep the world informed about the economic status of the country. In August, the Socialist President of Venezuela, Nicolas Maduro has reduced 5 zeroes from the Bolivar currency. He has also enhanced the minimum wage by 30 times to fix the inflation issue.
The unstable economy and a plunge in the purchasing power led to 2 million immigrants from Venezuela to other countries. But none of this has helped. The inflation has risen at a steady rate. Economists feel that the continuous intervention of the government in the economy is not letting the economy get back its normal growth. They feel the restrictions in the foreign exchange and control over the prices are harmful for this OPEC economy. On the other hand, Maduro has complained that the sanctions from the US government are acting as a barrier for the economy. He also claimed that the United States is trying to get control over the oil reserves of Venezuela.
As per the market analysts of Venezuela, the inflation rate will surely increase in the last couple of months of 2018 as state workers will get bonus, which in turn will increase the purchasing power of the consumers.