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The situation should only get worse. The IMF anticipates an inflation surge of around 1,000,000% by the end of the year
The inflationary spiral is impressive and continues to worsen month after month. The International Monetary Fund (IMF) is now anticipating a surge in inflation of around 1,000,000% by the end of the year.
"The bolivar, the local currency, is worthless. Venezuela is in a situation comparable to that of Germany in the 1920s, "when bread was paid in a wheelbarrow of notes, says Christopher Dembik, chief economist of Saxo Bank and good connoisseur of the South American country.
"Today, with the minimum wage – (…), you can buy only three packs of toilet paper, a carton of eggs or 1 kg of meat."
The country, which draws more than 90% of its oil revenues, sinks since 2013 and the fall of crude prices in an economic recession and an unprecedented social crisis. This galloping inflation makes Venezuelans' everyday lives very difficult. Every day, they struggle more to feed themselves and to heal themselves. "Today, with the minimum wage – recently increased by 103%, bringing it to 5196 bolivares a month (5 cents or 4 cents) – you can buy only three packs of toilet paper, one carton of eggs or 1 kg of meat ", explains the expert. At the end of June, a university professor made a sensation on Twitter by saying that he needed four months' salary to repair the soles of his old shoes …
"To limit inflation, the leaders would have to decide adopt a foreign currency. Or that the barrel of oil goes up to 230 dollars, against 70 today ", advance Christopher Dembik. In other words, impossible. The country seems to have left for years of crisis.
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