BCV: May Inflation Was 6.3%, the Lowest in 19 Months

Venezuela registered an inflation rate of 6.3% in May, marking the lowest figure in 19 months, as reported by the Central Bank of Venezuela (BCV). The BCV indicated that this deceleration signifies the country is entering a phase of reduced price increases, a positive sign for its economy.

However, the report also detailed significant price jumps in specific sectors. The largest increases were observed in leisure and culture (7.3%), followed by restaurants and hotels (7.1%), clothing and footwear (7%), household equipment (6.8%), educational services (6.6%), and communications (6.5%). This indicates that while overall inflation is slowing, certain essential and discretionary spending areas continue to experience substantial price growth.

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With this record, the country enters a path of deceleration.

The BCV noted that the inflation rate in January of this year reached a high of 32.6%. Since then, there has been a progressive reduction, with inflation figures standing at 14.7% in February, 13.1% in March, and 10.6% in April. This consistent downward trend suggests a potential stabilization, though experts point to the rising dollar exchange rate as a primary driver of price increases in Venezuela.

The Venezuelan bolívar has depreciated significantly against the U.S. dollar this year, losing 45% of its value on the official market. By the end of May, the dollar was trading at 549.37 bolívares, an 82.2% increase from the beginning of January. This devaluation contributes to the ongoing challenge of managing inflation and maintaining purchasing power for the country's citizens.

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The inflation was brutal in January, but after that, a frank deceleration began and happily we can say that the last two weeks of April were single-digit. We can expect that from May onwards we will start to have single-digit inflation in this country.