Venezuela economy is an inflation basket case
By Duncan Richardson, News Editor
01 Nov 2016
The Venezuelan economy is on the brink of collapse. Inflation is out of control, consumer confidence is non-existent and protesters rule the streets. Hyperinflation is taking hold as government officials refuse to publish official inflation data.
The nation’s currency the bolivar is so devalued even a simple purchase requires bundle of notes. To save time shop keepers are weighing notes instead of counting them. The country is weeks away from a full blown economic and social crisis. Prisoners in Venezuela’s jails are starving to death as food and medical supplies run out.
In the absence of official inflation data economists are estimating inflation is running anywhere between 200% and 1,500%.
In the last 100 years, there have been 55 recorded hyperinflationary episodes. Even some of today’s largest economics such as the USA, China and France have all suffered a hyperinflationary collapse in their recent history.