Venezuela's Central Bank estimates inflation at 18% in 2012

Vice-President of the Central Bank of Venezuela (BCV) Eudomar Tovar stressed that inflation will stand at 18% by the end of the year, below the 20-22% goal set for this year.

Tovar explained, "Lowering inflation is a hard task. Tremendous coordination with the Executive Office has been provided to bring prices down."

The BCV's vice-president expressed the need for raising supply to control inflation and stressed the heavy burden of food prices (36%) on the inflation index.

The official added that the financial institution looks forward to expanding gold reserves. He insisted that the bank's treasury division is empowered to sell gold if it deems it necessary.

During the session of the National Assembly held on Monday, Tovar presented BCV's budget for fiscal year 2013. Some USD 1.8 billion is to be allocated to the institution next year, that is, 26.9 % above FY2012 budget (USD 1.3 billion).

Translated by Jhean Cabrera