Thursday, January 8, 2009

Inflation Soars to 31% in Venezuela

Venezuela experienced inflation of 30.9 percent last year, the Andean nation's central bank said Thursday, well above the 20 percent forecast by the socialist government.
Prices of goods increased 33.9 percent in 2008, while those of services rose 26.8 percent, Banco Central de Venezuela said.

On a brighter note, the BCV said that the level of scarcity of staple products was 11 percent in December, the lowest figure in two years. Aides to President Hugo Chavez say the government's priority is to keep the Venezuelan economy growing and that the administration will not put growth at risk with measures to curb inflation.

Venezuela has enjoyed five straight years of economic growth, beginning with a 17.9 percent jump in gross domestic product in 2004, as the country recovered from the effects of a prolonged general strike that shut down the vital oil industry. The economy grew 9.4 percent in 2005, 10.3 percent in 2006 and 8.4 percent in 2007. Venezuelan GDP expanded last year by 4.9 percent, according to the BCV.

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