CARACAS -- Venezuela's government reported that Inflation for the month of October jumped to 5.1%, compared to the 4.4% seen in September, giving an accumulated inflation of 45.8% since the beginning of the year, double the Government’s target. For the last twelve months, the Venezuelan CPI, the INPC, is up 54.3%, the highest twelve-month level since the nationwide INPC was created.
Alcoholic Beverages and Tobacco was the group with the highest gain, up 8.6%; followed by Clothing and Shoes, up 7.6%; Housing Services, up 6.8%; Educational Services, up 6.7%; Restaurant and Hotels, up 5.6%; and Food and Beverages, up 5.6%. The last group accumulates an increase of 54.3% for the year and 72.1% in the last twelve months. Adjustments in the price of electricity are also having an important impact in the INPC.
The scarcity index reached reached 22.4%, a five year high.
"High inflation is not new for Venezuela, but the current level has not been seen for more than 15 years," said JP Morgan economist Ben Ramsey.