Venezuela’s monthly inflation slows to 7.1 per cent in September, says Central Bank

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Venezuela’s monthly inflation slows to 7.1 per cent in September, says Central Bank

On Saturday, Central Bank of Venezuela, the grief-sickened LATAM economy which has been a subject to steep US sanctions since the terms of former US President Donald Trump, said in a statement that the military-backed socialist economy’s inflation had dropped to 7.1 per cent in September compared to a reading of 19.8 per cent a month earlier, suggesting a silver lining into the beleaguered resource-rich economy amid a multi-year peak crude oil and natgas futures’ prices.

Nonetheless, latest headline figures from the Venezuelan Central Bank came forth following a three-month delay in release of inflation figures. However, according to a calculation based on an increase in Venezuela’s consumer prices last month, the LATAM economy’s annual inflation currently stood at 1949.9 per cent, which had been exacerbating amid a sharp uptick in delta cases alongside a stiffening of US sanctions, eventually stabbing the citizens’ hard-earned earnings while escalating poverty across the nation.

Besides, as a higher crude oil and natgas prices seemingly had prompted the Venezuelan Central Bank to print a lesser volume of money amid an increase in FX reserves, helping the besieged economy to import critical goods like of medicine and foods, Venezuelan currency’s exchange rate with its American counterpart was reportedly stabilized last month.

Venezuela’s inflation slows in September

Concomitantly, followed by the release of Saturday’s data, the military-backed socialist Government of President Nicolas Maduro that laid the blames of an intensifying economic crisis on US sanctions, had flexed some of its legislations and hinted that a recent rise in transactions in foreign currencies could be “an escape valve” for the economy.

The economy of Venezuela, a founding member of OPEC (Organization of Petroleum Exporting Countries), has been on the brink of an imminent collapse following four long years of hyperinflation which had reportedly led to a sweeping increase in use of FX currencies for routine consumer spending in hypermarkets alongside pharmacies.