Venezuela private sector: inflation will reach 35% this year

Venezuela’s business chambers, Fedecamaras warned that inflation this year will reach 33 to 35%, several points ahead of the latest government estimate, caused mainly because of insufficient production and supply. Noel Alvarez, Fedecamaras vicepresident said the administration of President Hugo Chavez commits a serious mistake on blaming alleged hoarding and speculation from local manufacturers and farmers for the soaring prices, and in focusing the problem on that specific interpretation. “Our inflation estimates are in the range of 33 to 35%, but with insufficient production there will be no curbing of inflation and this must be understood by government”, said Alvarez in an interview with a Caracas broadcasting station.