Merida, October 17th 2012 (Venezuelanalysis.com) –Elias Eljuri, president of the National Statistics Institute (INE) said Venezuela’s inflation is likely to be 18% this year, taking into consideration the variations that Venezuela’s economy is usually subject to between October and December.
“The generalised variations of inflation in the country have gone down from 27.6% – the figure registered at the start of the year – to 18% in September, and with this we are advancing towards our aim of reducing inflation to one digit,” Eljuri told the public radio station, YVKE Mundial.
He also estimated that the economy will have grown by at least 5% this year.
Eljuri added that the government increased Venezuela’s minimum wage by 32.3% this year (almost double the predicted inflation for the year), placing Venezuela among the countries with the highest minimum wage in Latin America. Including the value of food tickets, full time workers in Venezuela earn a minimum of 3000bs (US$ 698) per month.
He also pointed out that over the last 14 years the national executive has spent US$500 billion on social investment.
Venezuela’s accumulated inflation for the first seven months of this year stood at 8.6%, down from 16% during the same period last year, and where annual inflation has averaged 26% per year since 1999. Venezuela’s inflation peaked at 103% in 1996, under President Rafael Caldera.
The Venezuelan government had predicted lower inflation rates this year, mostly as a result of it gradually implementing price limits on some products, increased productivity, and greater availability of goods and services. The government based its 2012 budget on a yearly inflation rate of 20 to 22%.