Inflation that is rampant is nothing new to the Venezuelan economy. However in a sign of just how severe the situation has grown for some people there, food prices spiked by 22.2% in August from the previous month, according to new research on the country.
The inflation figure we see represents the highest August rate in about 20 years, according to data from the Caracas-based workers’ advocacy group Cenda. Cenda said is a statement on Friday that even though prices climbed at a slower pace than the 32.6 percent inflation rate that we saw in July, but economists worry that Venezuela may be on the brink of greater unrest and and literally might not be able to feed their people.
When this occurs, you see people turning to the Black Market to find what they need because many items simply not available. You also see people not being able to provide anything beyond the basics for themselves and their families.
The Venezuelan bolivar has also plunged this week against a strong U.S. dollar. Maduro’s government has printed more bolivars in an effort to pay off its budget deficit but that may not work to help this company.