Low income families hit by a 3.1% inflation rate in September

Rise in food and transport prices hit low income families in September. 

The information was revealed by the Central Bank of Venezuela (BCV) through the September Consumer Price Index (CPI) reported in Caracas. The index shows that low income families suffered a 3.1% inflation in September 2012, a higher figure than in the same period in 2011 (1.5%).

Low income households spend as much as 48% of their monthly income in basic staples and 5.9% in transport. Therefore, any increase in price is very likely to have a serious impact on them. According to data recorded by the BCV, only in Caracas food prices jumped 2.5% in September while transport reported a 3.2% hike.

Analysts believe the rise in food prices was mainly due to an increase in public expenditure, which led to more money in circulation amid restricted supply. 

During the first half of 2012, food production dropped 9.4% and regulations on basic staples prices recorded by August were driven by a rise in imports. The BCV data reveals that imports grew sharply 18% through June 2012.

Translated by Jhean Cabrera