Economy
Figures from the Central Bank of Venezuela (BCV) showed that in February the national consumer price index slowed down slightly to 1.3 percent, the lowest level in the last 14 months. However, the results by groups and regions show that inflation has not been totally curbed.

According to the BCV, the accumulated inflation rate during the first two months of the year was 3.6 percent, down from 5.3 percent in the same period last year. The annual variation dropped to 28.8 percent. The BCV also said that the trend is likely to continue over the next months. The 2009 inflation target set by the Central Bank is 15 percent. 

Inflation data in February shows that the slowdown was due to a decline in the prices of food, alcoholic beverages, tobacco, house rental, entertainment and culture, education services, restaurants and hotels, and health. There were price increases in household services, communication, clothing and footwear, transportation and household equipments.

Upward trend
Although the national and local (Caracas) consumer price index decreased, the inflation over the past twelve months has performed differently.

According to the BCV data, Caracas inflation rate over the last twelve months amounted to 29.5 percent. Food prices have soared 40.1 percent between February 2008 and February 2009, while they increased by 34.7 percent during the period between February 2007 and February 2008.

This increase is due, in part, to problems in the supply of goods. In fact, the prices of agricultural products jumped 69.9 percent.

The shortfall index also mirrored some shortage problems. According to the BCV report, in Caracas the shortage index increased slightly from 10.2 percent to 11.9 percent. However, the BCV said that the gap between supply and demand "records one of the lowest levels in the last two years." Meanwhile, the index measuring the lack of food items improved from 23.8 percent to 22.7 percent.

In order to address shortage problems, the government has regularly increased imports. However, declining oil revenues is expected to lead to a reduction of purchases abroad. 

In addition to food items, the inflation rate also increased in the last 12 months in health services (35.5 percent). Meanwhile, the prices of household equipment climbed 39.7 percent during the same period.

The BCV reported that the Venezuelan cities with the highest inflation rates were Maracay and Mérida.

Translated by Gerardo Cárdenas

Mayela Armas H.
EL UNIVERSAL