Venezuelan food price inflation among the highest in Latin America

A report compiled by the Food and Agriculture Organization of the United Nations (FAO) reveals that by the end of July the increase in food prices in Venezuela was among the highest in Latin America and the Caribbean.

Food accumulated prices from July 2011 through July 2012 accounted for 21.7% in Venezuela, which is by far higher than the figures recorded in the region (8.9%) and countries such as Colombia (3.8%), Peru (4.6%), Chile (6.5%), Brazil (8.7%), and Argentina (10.9%).

It is worth noting that Venezuela suffers significant inflation imbalances despite price regulations and a fixed foreign exchange rate. Over the last three months the driving forces behind the rise in prices has slowed down, bridging the gaps within the region, though.

FAO's report indicates that food prices in Venezuela jumped 2.7% over the last three months as against 2.2% in the region, reveling a gap reduction.

Meanwhile, the Central Bank of Venezuela (BCV) remarked inflation has dropped amid a surge in "production and distribution."

Nonetheless, analysts asserted that upon Venezuelan 2012 presidential election, the Government will have to make adjustments to regulated prices, having in turn an impact on inflation.

Translated by Jhean Cabrera