The severe economic crisis in Venezuela is driving the rate of inflation in the country to dizzying heights. Inflation was 130,060 percent in 2018, the country’s central bank said yesterday. For the first time in three years, it published figures on the rise in consumer prices. According to the central bank, the inflation rate was 274.4 percent in 2016 and 862.6 percent in 2017.
However, the numbers are far below the estimates of the International Monetary Fund (IMF) – for the past year, ten times. For 2018, the IMF estimates inflation in Venezuela at 1,370,000 percent. For 2019, his estimates are at ten million percent.
Power struggle between Maduro and Guaido
According to the Central Bank, oil revenues in 2018 fell to 29.8 billion dollars (26.7 billion euros). In 2013 they were almost three times higher, in 2014 they were at 71.7 billion dollars. The state budget depends almost completely on the oil business.
Venezuela has been in a serious economic crisis for years. People are suffering from dramatic supply bottlenecks, food and medicines are scarce. In addition, in Venezuela raging for months a power struggle between the controversial President Nicolas Maduro and the opposition leader Juan Guaido.
