The hyperinflation experienced by Venezuela was halted in February, the month in which prices increased by 22.4% compared to the previous month, the National Assembly Finance Commission (AN, Parliament) reported on Wednesday.
The deputy Ángel Alvarado stressed in a press conference that this price growth occurred despite the fact that the value of the dollar remained stable throughout the month with respect to the sovereign bolivar.
In April 2019, Alvarado said that “technically, to get out of hyperinflation, 3 months below 50% are required,” so it is necessary that the price increase below that figure be maintained two more months, so that that economic phase that Venezuela is experiencing is over, which began in November 2017.
The parliamentarian explained that the accumulated inflation so far this year is 102.4%, since prices increased by 65.4% in January, according to the same commission of the AN, in which the opposition has an absolute majority .
Alvarado explained that, although the dollar exchange rate remained stable, prices continued to grow because “there are some items, such as telecommunication sectors and service sectors that vary significantly despite the food and non-alcoholic drinks were relatively low. ”
Venezuela is experiencing a de facto dollarization of its economy, which is why the price of the sovereign bolivar against the US currency is so important for inflation.
When detailing the price increases, he explained that the food and non-alcoholic drinks sector had an inflation of 15%; that of alcoholic beverages and tobacco, 10.7%; clothing and footwear, 14.4%; rental of housing, 22.4%; household equipment 3.4%, health, 34%; transport, 21.1%, and the 511.1% communication service.
On the other hand, the leisure sector increased its prices by 13.6%; that of education, 55.4%; hotels and restaurants, 9.2%, diverse goods and services, 22.6%.
Within the telecommunications section, the largest price increase was seen in cellular telephony, which increased 748.16%, internet, 253.63%, and local telephony, 80.33%.
According to Alvarado, in February, the measurement of the parliamentary commission for the purchase of food for a representative family of five members involved the expenditure of 18.38 million bolivars, which amounted to 255 dollars.
All this, “only to bring food to the representative table of the Venezuelan people of five members.”
However, in February the salary is only 250,000 bolivars, with which “the salary only covers 2% of the food basket”.