Inflation in Venezuela slows down and closes in 2021 at 686.4%

Venezuela closes 2021 with a inflation of 686.4%, which shows a slowdown with respect to the previous year when it stood at 2,959.8%, according to the data released on Saturday by the Central Bank, but the South American country still continues under a long economic crisis.

In December, prices had a 7.6% variation, according to official figures. Since September, the inflation rate has been in the single digits.

This deceleration in prices has been due to some measures implemented by the government, among them, the restriction of bank credit and lower spending in bolivars to maintain the stability of the exchange rate.

As part of the strategy, which seeks to highlight that hyperinflation is being fought, government entities and the state oil company PDVSA now make parts of their payments to suppliers with foreign currency in cash. President Nicolás Maduro said on January 1 in an interview broadcast on state television that the country is leaving “the state of hyperinflation,” which lasts 4 years.

“I can declare politically with the result of the inflation management between the months of September, October, November and December, which has been one digit with a downward trend,” added the president.

Despite measures to improve the supply of products and control inflation, prices are still high and continue to hit the incomes of Venezuelan families, thus limiting their ability to purchase goods such as food and medicine. A monthly minimum wage is equivalent to 1.5 US $.

In the midst of hyperinflation and economic collapse, the Venezuelan government at the beginning of 2019 relaxed controls on the economy, which has allowed more cash to circulate and some businesses and industries have oxygen. Although the Central Bank released the inflation data, it has not yet updated the figures on the performance of the economy, and the latest information corresponds to May 2019.