Venezuela inflation 2.6 pct in May; annual rate still highest in Latin America at 31 pct
By APTuesday, June 8, 2010
Venezuela inflation dips to 2.6 pct in May
CARACAS, Venezuela — Consumer prices in Venezuela rose 2.6 percent in May, a significant slowdown from the previous month, though annual inflation is still the highest in Latin America at 31.2 percent.
Released by the Central Bank on Tuesday, the monthly figure is down from 5.2 percent in April but higher than the 2 percent recorded in May 2009.
Analysts say a currency devaluation early this year is still pushing prices higher, along with other factors such as shortages of some foods and increases in some government-set food prices.
President Hugo Chavez’s government has set a goal of 20 percent to 22 percent inflation this year, but independent analysts predict it will top 30 percent.
The government has sought to confront inflation with a range of measures including recent seizures and shutdowns of businesses that authorities accuse of driving up prices.
Former Central Bank official Jose Guerra said those approaches haven’t worked well, and the current recession is leading to a fall in production and less supply of various items, including some domestically produced foods, which is heavily affecting prices.
The economy contracted 5.8 percent in the first quarter of the year.
