Monthly inflation at 17-year high in Venezuela

[Zorro]

Inflation in Venezuela reached 6.1 percent last month, the oil-rich nation's highest monthly inflation in 17 years.

Venezuela's Central Bank released the figure Thursday, citing mostly rising food prices. Currency and price controls are blamed for shortages of basics including flour, sugar, cooking oil and toilet paper.

Currency controls have helped make the black market dollar worth more than four times the official dollar, which is virtually impossible to obtain legally.

Many economists believe socialist-run Venezuela is in a recession as rising domestic demand for gasoline crimps oil exports.

http://news.yahoo.com/monthly-inflation-17-high-venezuela-211814680.html

[RobertEarl]

1. Oil exports are down

There's the problem. Less cash coming in.

They could do like the US does and sell bonds. I wonder how far in debt V is?

One day here I saw cornbread go up 20%. Seen gas go up 10% in a day too.

I wonder how much flour, sugar, cooking oil and toilet paper the US has been trading to V for their oil? Sounds like Koch type goods. Ya think the Kochs could be putting the screws to V? They sure screwed us over.

[Socialistlemur]

2. Jesus you got to be kidding

Oil exports and prices are down, but the reason inflation is up is the huge surge in currency printed last year to help Chavez get elected, and the additional issues early this year to help Maduro get elected. They have declining national production, the currency was too strong, there's too much demand, not enough production, and they can't afford to import to keep people satisfied.

I've posted multiple times they need to devalue, because the black market is running almost 5x the official rate. It creates huge pressures. But the government is run by fools.

Regarding debt, they are in it up to their necks. Nobody lends them unless its at huge interest rates. This is why lately they are making deals with large oil companies. They are mortgaging their oil.