CARACAS – Inflation for the month of December in Venezuela is up 81 percent, which means the Caribbean country is closing the year with an accumulated inflation of 2,735 percent, according to preliminary calculations by the financial analysis firm Ecoanalitica.
The company director, economist Asdrubal Oliveros, recalled that accumulated inflation for 2016 was 525 percent.
Venezuela’s government and Central Bank have not published inflation data or other economic indicators since 2015, so that private consultants like Ecoanalitica and Econometrica calculate these values, while also offering their estimates to the National Assembly legislature, the only branch of government in the hands of the opposition.
According to these sources, Venezuela technically entered a state of hyperinflation several weeks ago, when it passed the monthly inflation threshold of 50 percent.
In a report presented before the US Securities & Exchange Commission, required in order to trade treasury bonds in that country and published in December by that American institution, the Chavista government had a decrease in GNP in 2016 of 16.5 percent and admits to an accumulated inflation of 274.4 percent for that year.
According to the International Monetary Fund (IMF), Venezuela is the only country in the world that will close 2017 with a four-digit rate of inflation.
Since they came to power in 1999, the Chavista governments have raised wages more than 40 times, while thousands of private companies were nationalized, moved away or went out of business.
The Venezuelan government talks of inflation “induced” by the United States, the international financial system, the opposition and some local businesses and traders that it accuses of “speculation.”