Inflationary reduction in Venezuela due to proper economic policies, 06th August 2010
AVN .- The reduction of 1.4% in Venezuela"s Consumer Price Index (CPI) in July is a result of the economic policies adopted by the Government, regarding its intervention in food distribution and the black market of currencies, said on Thursday the Planning and Finances Minister Jorge Giordani. This tendency will be reflected not only in food items, but also in other areas and will continue falling, he added. “The result we are evidencing was something predictable as a result of a proper policy. The values last year were 2.1% in July; 2.2% in August; and 2.5% in September. In contrast, this year, we had 2.6% in May; 1.8% in June; and 1.4% in July. As some indirect indicators reflect, this tendency could remain,” Giordani stated. In this regard, he concluded: “The most significant fact is the change of tendency, that will be reflected not only in the Price Index, but in other variables.” He explained that the price of food had an increasing trend due to speculation, which was controlled thanks to the socialist food distribution networks, such as Mercal. “This (inflationary reduction) is a tendency that has began to be consolidated in the most important products, which had a variation of only one percent as a consequence of a redistribution policy controlled by the State. For such reason, they [Government opponents] attack Mercal that much,” Giordani added. Moreover, he said that the inter-monthly variation of the inflation is also linked to the control exercised by the Government over the speculation in the black market of currencies and the stock market.