" />
Published On: Tue, Oct 20th, 2015

Venezuela struck by runaway Inflation

 nsnbc : Venezuela is struck by a runaway inflation estimated to amount to be between 80 and 159 percent in 2015. The Venezuelan government promised a 30 percent minimum wage increase from November 1, prior to elections in December. 

bolivars_dollars_VA-archiveThe rapid fall in oil prices has stressed Venezuela’s economy and contributed to a runaway inflation. The PSUV-led Venezuelan government also attributes part of the inflation to what it describes as economic warfare by international as well as domestic actors, such as Venezuelan businesses that withhold goods from the market to speculate on increased prices.

The Venezuelan government officially estimated inflation in 2015 to be at some 80%. The International Monetary Fund (IMF) on the other hand, predicts an inflation of 159% in 2015.

The Venezuelan Central Bank has not yet published official inflation estimates for 2015. Venezuelan President Nicolas Maduro responded to the soaring inflation to the press, saying:

“If we protect employment and wages, we are going to defeat the criminal and speculative prices of the bourgeoisie and the bachaqueros. I call on you to join the battle so I don’t have to face the criminal bourgeoisie alone.” 

On Thursday Maduro announced a 30% increase in minimum wages as well as en expansion of Venezuela’s food ticket program, taking effect from November 1. The wage raise is the fourth wage raise in 2015 and the 30th wage raise within the last 15 years. The wage raise will also affect pension plans.

Earlier this year the PSUV-led government decided to respond to the effects of the the steep fall in oil prices on the country’s economy by initiatives aimed at diversifying Venezuela’s domestic and export economy. The 30% wage increase comes one month prior to elections, scheduled for December 2015.

F/AK – nsnbc 20.10.2015

About the Author

- nsnbc international is a daily, international online newspaper, established in 2013. nsnbc international is independent from corporate, state or foundation funding and non-partisan. nsnbc occasionally republishes selected articles from other media. Republication of articles does not imply that we agree with media's editorial policy. nsnbc international is free to read and free to subscribe to. We appreciate and depend on modest donations from our regular readers; such as the equivalent of the price of one print newspaper per month.

Displaying 1 Comments
Have Your Say
  1. Venezuela must be self supporting with regard to water and to quality foods grown without GM and without toxic farming methods. These must be from land that is owned by the people and smaller scale farmers and not by big landowners or big corporations. Once all of the people can be well fed, once they all are well nourished and once the cost of the food is within the reach of all, the nation has gone well over half way towards looking after itself.
    Following on from this would be treatment of sewage, solar panels, electricity and well thought out housing.
    Cottage industries are to be encouraged and local markets should be encouraged. the government can also create a Venezuelan web site which sells the creations from cottage industry online all over the globe.
    Products from this web site could be used to market it by having a Venezuelan logo with the website address.
    I love cottage industry products.

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>