The ongoing Damage to the Venezuelan Economy
Via the BBC: Venezuela’s annual inflation rises to 63.4%
Venezuela’s annual inflation rate has risen to 63.4%, the highest in Latin America, according to official figures published on Tuesday.
The figures are the first released by the central bank since May, which has led critics to accuse the government of withholding data for political reasons.
Speaking of data withheld:
The central bank did not publish its scarcity index, a measure of goods that are missing from store shelves, but shortages of basic items such as flour, milk and toilet paper continue to be the bane of many shoppers.
The government in Caracas has not yet revealed its gross domestic product (GDP) forecast for 2014, but a number of international economists have been gloomy in their assessment.
London-based economic research consultancy Capital Economics has predicted that Venezuela’s GDP will contract by a cumulative 5% in 2014-2015.
It also warned of a "growing risk of a much deeper recession and default".
The Maduro government blames anti-government protests in the early part of this year, however the root cause of these problems are self-inflicted by the government itself. The shortages noted above, for example, preceded the protests. No doubt the protests did not help, but they hardly caused the problems.