Venezuela Hyperinflation Hits 46,305%: Food Prices Soar 183% In One Month

While hardly a surprise in a country in which the military recently seized control of the water supply as the local infrastructure collapses, what is going on to the price of money in this former socialist paradise is simply stunning and is set to put even the Weimar Republic and Zimbabwe to shame.

In June, Venezuela's annual inflation hit 46,305% the opposition-controlled congress said on Monday, as the crisis-stricken nation’s hyperinflation continues to accelerate amid a broader economic collapse even as president Maduro refuses to make any structural changes to the nation which boasts the world's largest petroleum reserves.

To be sure, the number is not official as Maduro's government stopped publishing economic indicators nearly three years ago the country's economic system started falling apart, making opposition legislators the only source of such figures. This makes it virtually impossible to visualize the inflationary trend, although Bloomberg's Cafe Con Leche index sit at a roughly comparable level of 43,478%. More absurdly,  annualizing the last three months of data, paints an even more dismal picture: inflation of 482,153%.

Looking at just the past month, Reuters reports that June inflation accelerated to 128.4%, the fastest this year, from 110.1% in May, according to opposition legislator Angel Alvarado. Even more shocking, food prices rose by 183% in June.

"It is by far the worst hyperinflation suffered by a Latin American country," Alvarado said in an interview.

Putting this inflation in monetary equivalents, one million bolivars is currently the equivalent of a mere 29 cents.

Maduro, who was reelected in May in a vote that virtually all foreign observes described as rigged, promised to take measures to improve the situation. So far he has failed to do so, and instead insists that the problems are the result of an “economic war” led by the opposition business leaders who arbitrarily raise prices. There was no mention that this is the inevitable outcome of a corrupt government controlling all means of production.

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silverer TBT or not TBT Mon, 07/09/2018 - 22:25 Permalink

Zimbabwean annual inflation rates (official)
1980-7%
1981-14%
1982-15%
1983-19%
1984-10%
1985-10%
1986-15%
1987-10%
1988-8%
1989-14%
1990-17%
1991-48%
1992-40%
1993-20%
1994-25%
1995-28%
1996-16%
1997-20%
1998-48%
1999-56.9%
2000-55.22%
2001-112.1%
2002-198.93%
2003-598.75%
2004-132.75%
2005-585.84%
2006-1,281.11%
2007-66,212.3%
2008-231,150,888.87% (July)

The zim was effectively abandoned as of April 12, 2009.

It's interesting to note that early in its introduction, one zim dollar was worth $1.47US.

In reply to by TBT or not TBT

new game wee-weed up Mon, 07/09/2018 - 20:07 Permalink

compare V to norway. vast amounts of oil.

iq could mater, just sayin.

just askin? who invented what and where(or what nationality).

also, who in this modern world advanced the sciences?

mathematics physics? applied it to technology that has made life on this planet better?

no, not worse as in a shit/shitstain on the earth or scorched earth or a squalor shit hole like Brasils slums.

just askin, just seeking answers, that is all... 

In reply to by wee-weed up

Teja new game Tue, 07/10/2018 - 01:46 Permalink

Ah, I thought science is "fake news", invented to manipulate the masses? Truth being on the side of the Flat Earthers, the Chemtrailians and similar?

So, if Venezuela has not produced any real science, they should be better off than Norway. Maybe the V's are only too smart for their own good?

In reply to by new game

Teja Teja Tue, 07/10/2018 - 01:52 Permalink

Actually what matters is cooperation. Norwegians, as a seafaring cold climate people, were historically forced to cooperate or perish. They trust each other, and there is almost no corruption.

In Venezuela, like many southern countries, no one trusts people not from their family. Hacienda owners exploit their peasants. Now with "socialism", those peasants just play out the behavior they have been used to for generations. Extremely difficult to change such a behavior.

In reply to by Teja

serotonindumptruck SMG Mon, 07/09/2018 - 18:33 Permalink

TPTB can always "pull the plug" and allow the USD to devalue to the point of insignificance, while the elite run for their secret bunkers in New Zealand, Ecuador, or Paraguay.

Global thermonuclear war is not required.

Just pull the plug on all fiat paper currency and force the masses to fight each other to the death for whatever scraps are left.

In reply to by SMG

snblitz SMG Mon, 07/09/2018 - 20:54 Permalink

See Millennials,  this is what happens when the money to pay for all the free stuff runs out.

I present this argument, and "they" respond that the result is deserved as the people are simply not "good enough" (altruistic) for the socialist system to work.

"If men were angels..." comes to mind.

No matter how hard I try the Millennials end up making this argument:

"It will be a socialist utopia after we kill all the bad people like you"

I point out things like the french revolution, and all the other failed revolutions, followed by mass deaths of people like me, and they still stick with "if it is done right this time..."

 

In reply to by SMG

AsEasyAsPi peopledontwanttruth Mon, 07/09/2018 - 18:32 Permalink

Just watched a Russian documentary on the Soviet Union.  What an incredible tale of Socialistic Corruption.  Socialism simply doesn't work, unless Capitalism supports it (just ask China).

While all of Russia was starving, the top Socialists plundered over 1/2 of the entire Russian gold holdings and scurried it all away in foreign holdings.  Weeee Socialism!

In reply to by peopledontwanttruth