Venezuela eases price controls on food

Venezuela relaxed price controls on 15 foods ranging from bread to beef and removed controls from other products Tuesday in a bid to ease sporadic shortages in supermarkets. The move, which increased controlled prices from 20 to 50 percent, generated fears of an upward tick in already high inflation in Venezuela, whose government is trying to move the South American nation toward socialism. Eduardo Saman, president of the state-run Institute for the Defense of People's Access to Goods and Services, said the price adjustments would have a minimal effect on inflation. He argued it may even help keep prices down by encouraging vendors to heed price controls instead of selling goods ``at whatever price.'' ``The measures seem very rational to me,'' Saman told The Associated Press. Foods in high demand, such as prime cuts of beef, went up 50 percent to US$8 per kilogram (US$3.60 a pound), while pasta went up 23 percent to US$1.57 per kilogram (71 cents a pound). Wheat-bread prices increased 49 percent, reaching US$2.06 per kilogram (94 cents a pound).
The government removed price controls for items including oatmeal, salt, and special pork cuts, while relaxing controls on bread, beef, pork and pasta. The measures went into effect on Tuesday.