Venezuela's hyperinflation ranks third in Latin America history

in economic •  3 months ago


 Hyperinflation in Venezuela reach a new record last month. According with the Congress (only branch of power controled by the opposition) the prices rise 223.1% in August, the highest figure for a month in Venezuela's history and the third one in Latam's history.

Steve Hanke, Cato professor and authority in hyperinflation, include Venezuela in the Hanke-Krus World Hyperinflation table on November 2016, but Venezuelan economist only recognize that the hyperinflation episode stars in November 2017, when the inflation reached more than 50% according with Congress data based on consumer prices and not in exchange rate as Hanke's methodology.

But if we take the Hanke-Krus table, it is possible compare the situation in Venezuela. As show in this table that combine Hanke-Krus data with Venezuela's Congress.

In August the daily inflation was 4% (yes, four percent). The current inflation rate for the United States is 2.9% for the 12 months ended July 2018.

Despite the government promise not print more inorganic money (money without support in the productive activity), in August's last two week the Central Bank rise the monetary supply by 25%, an another historic mark. So, we could expect more inflation next months.

Picture source: Pixabay
Table source: Author with Venezuelan Congress and Steve Hanke data

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