Investment

Venezuela: Parliament estimates inflation rate at 2,600 percent

Summary

Venezuela has been in a dramatic crisis for years due to mismanagement and corruption. Inflation in the oil richest country in the world takes your breath away. In view of the severe economic crisis, the inflation rate in Venezuela has […]

Venezuela: Parliament estimates inflation rate at 2,600 percent.  Venezuelans now need bundles of money to buy many things.  (Source: dpa / Georg Isma)

Venezuela has been in a dramatic crisis for years due to mismanagement and corruption. Inflation in the oil richest country in the world takes your breath away.

In view of the severe economic crisis, the inflation rate in Venezuela has risen to 2,616 percent, according to parliamentary calculations. “We are the only country in the world with hyperinflation,” said Rafael Guzmán MP from the Finance Committee on Monday. The National Assembly, which is controlled by the opposition, was ousted last year by a constitutional assembly loyal to the government.

The government has not published any inflation reports for years. The International Monetary Fund (IMF) forecast an inflation rate of 652 percent for 2017 and an inflation rate of 2350 percent for 2018.

“The central bank is responsible”

Due to mismanagement, corruption and the relatively low oil price, Venezuela has been suffering from a severe economic and supply crisis for years. There is a lack of foreign currency to import groceries and everyday necessities.

Several rating agencies have already certified the oil-richest country in the world a partial bankruptcy. “The central bank is responsible for hyperinflation. It prints money to continue funding the government, ”said Finance Committee chairman, economics professor José Guerra.

Those:– dpa-AFX