Sunday, December 29, 2013

Venezuelans Wonder: What Happened To The November Inflation Report?

A combination of mad money printing and price controls is ruining the Venezuelan economy. The Venezuelan central bank makes the Fed look a hard money bastion by comparison.

AP reports via FOX:
here's one burning question among economists in Venezuela these days: What happened to the November inflation report?

It's been more than two weeks since the deadline passed for the central bank to publish its closely-watched consumer price index and so far authorities have been mum about when it will be released.

Economists and opposition politicians say the delay is a sign the government is trying to hide its embarrassing record controlling inflation, now running at 54 percent, after President Nicolas Maduro last month delivered a rare rebuke of the way the bank measures prices. They warn of more interference to come, undermining an institution that until now has been a redoubt of balance and credibility amid a decade-long socialist push that has divided Venezuelans.

"The most extreme way of manipulating the data is not publishing it," Victor Olivo, a former manager of macroeconomics analysis at the central bank, told The Associated Press.

The central bank's bylaws require it to publish inflation data within the first 10 days of each month. On the rare occasions when it has missed the cutoff date before, it was late by only a few days.

Intrigue about the delay began to build after the bank abruptly cancelled a Dec. 19 news conference to release the report[...]

Maduro last month questioned the reliability of the central bank's data, saying that internal calculations he had seen showed prices fell 5 percent in November as a result of the government's actions[...]

Economists say Maduro's forecast has no basis. While the prices of televisions, stoves and refrigerators did fall by more than half after the government offensive, appliances carry around a 2 percent weighting in the consumer price index, making it impossible to swing the gauge at a time prices for food, clothing and services are rising by more than 5 percent a month.

Economists also depend on the inflation report to monitor another ill battering the South America's largest oil economy: record levels of shortages.

The October report's so-called scarcity index showed that out of 100 products measured, 22 were out of stock.


  1. Ah, yes. The wonderful benefits of socialism courtesy of the Venezuelan government. LOL!!

    You morons who in Venezuela: Had enough of "Government is God" yet or do you want it to stick that socialist rod up your ass even harder? Man, some people are so weak minded or maybe just plain gluttons for punishment.

    1. but.. but.... free plasma TVs ?? I was promised !

  2. Answer: They ran out of toilet paper to write it on...

  3. More than 5% per month on food, clothing and services? If, instead, the inflation rate were exactly 5%, the inflation rate on the selected goods and services would be almost 80%, correct? I calculated that as follows:

    Inflation rate = (1 + .05)^12 - 1 = 0.796