Inflation 2013-2016

Progression: Inflation 2013-2016 – In the year of 2013 the Central Bank of Venezuela (BCV) announced the National Consumer Price Index in November and traded at 4.8%, which was quite high compared to the previous year’s inflation -exactly in the decade the 80’s- which was 2.2%. The year ended with a total inflation of 56.2%, note that was well above what is planned as an annual national budget around 14% (fourteen) or 16% (sixteen) in the year of 1996, due to the removal of the price controls and the foreign exchange stood at 103.2%.

The reports issued by the Central Bank of Venezuela (BCV) to specifically state that the “category of household equipment showed a deflation of 1.1% in November and this was thanks to the laws against the ‘economic war” that has lived in the country with less intensity, taken by the National Executive.Despite this, the filler having searched the Central Bank of Venezuela (BCV) within the overall index was 4.86%. Moreover, the food increased 7.5% and the transport increased 2.1%.

“The Central Bank of Venezuela (BCV) reaffirms its position next to the Venezuelan people, adding  protagonist efforts to build the socialism as a new order in the national economic “and concludes the published report was called Dynamic pricing in the economic and political situation of the year of 2013:  The Economic Warfare and the Government counter offensive.

Moreover in the year of 2014, the annual inflation was positioned in a 63.4% according to the figures published by the Central Bank of Venezuela (BCV) to specify in this report on the numbers of scarcity that existed in the country in that year.

However, in the report it was pointed out that the sectors most specifically increased in the month of August were the services of the water, the electricity, among others, without the phone with an 8.1% and the food basic basket and the soft drinks with 5.9%.

According to the National Consumer Price Index (CPI) the city with the highest record was the city of San Cristobal with 4.9% then 4.5% the city of Maracay and the city of Valencia with 4.3% in the third (3rd).

In another instance, in the year of 2015 the first two (2) quarters were located with an inflation rate of 108.7% and only at the end of the last quarter was 141.5% as announced by the Central Bank of Venezuela (BCV), the entity making calculations by the CPI and the Institute of National Statistics (INE).

The classified results last quarter from its inflation scored lower than the average increase is a 38.91% divided into the housing services 2.5% 9.0% the rental housing, the communications 15.0%, the miscellaneous goods and the services 22.3%, the health 23.8%, the transport 27.0%, the recreation and the culture 30.0% 33.3% the home equipment, the clothing and the footwear 35.6%, and finally into the following groupings accumulated as the education services 43.3%, the alcoholic beverages and the snuff 50.9% are variations, the restaurants and 52.0% the hotels and the food and the non-alcoholic beverages 55.7%.

It is well known that various factors were the ones who set the process of the economic activity in the third (3rd) quarter, a very low availability of foreign exchange in the country was found, and it was this that produced a high impact on the falling in the prices of the oil 57%, this would seriously affect the imports in the national productive apparatus.

However, this year of 2016 is forecast that the inflation in Venezuela increased 500% (five hundred) according to the International Monetary Fund (IMF), in a report states that “the prices are climbing out of control, and we expect the inflation to increase to 720 (seventy two hundred) percent this year, after achieving a world record rate of about 275 (two hundred seventy five) percent in the year of 2015 “.

It also indicates that the political and the economic distortions and the fiscal imbalances in the country of Venezuela can create an atmosphere of instability for all the Venezuelans, “they were aggravated when the decline in the oil prices triggered an economic crisis, with a fall in output estimated by almost 18 (eighteen) percent during the year of 2015 and the year of 2016 “.

The International National Fund focuses on two (2) power countries in the economic field that brings them great concern, among them is the country of Brazil in the year of 2015 was a setback and 3.8%, and this year is expected to fall by 3.5%, and moreover the country of Venezuela who had a drop of 10% (ten) in the year of 2015 and that in the current year will have an estimated 8% (eight) recession.

Thanks to the economic crisis which transits the country, the international organizations and who qualify the risks are in a negative position because of how closed the year of 2015 -for the high- inflation, which are aspects of scarcity and added to that the falling of the oil prices.

The Deputy Director of the Research Department of the International Monetary Fund Gian Maria Milesi-Ferretti, through a press conference expressed “Clearly, the country of Venezuela was already suffering serious macroeconomic imbalances, which has been exacerbated by the fall in the oil prices” , referring to the report of “Global Economic Prospects” displayed as part of the Annual Meeting in the city of Lima, in the country of Peru.

In the government of Hugo Rafael Chavez Frias, exactly in the year of 2007, the President broke relations with the international body and that is why for this year of 2016 it is expected that the situation will not have an immediate improvement.

Two (2) options that may be feasible to attack the national economy according to the official of the International Monetary Fund (IMF), which are the neighbor of the country of Colombia, a country that has “a greater commercial relationship” are considered, although in the recent years this relationship has been weakened by various reasons and moreover in the Caribbean, through the Petrocaribe program that can be softened thanks to “the lower prices ahead of the purchases by the Caribbean countries.”

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