By One Measure Venezuela's Run Away Price Inflation Has Hit 1,526%

Bloomberg has launched its own measure of price inflation inflation in Venezuela.

It tracks just one item: a cup of cafe con leche served piping hot at a bakery in eastern Caracas.

Notes Bloomberg:

For all of the index’s shortcomings, it has merits too: it’s tangible; tracked regularly; and, given that it monitors a product consumed by Venezuelans everyday, provides a unique, up-close look at inflation in one of the most dysfunctional economies on earth.

The index debuts today at an annual price inflation rate of 1,526 percent, the result of the price having soared from 450 bolivars per cup to 1,100 bolivars over a span of 17 weeks.

   -RW