The price of a cup of
coffee in Bloomberg’s Cafe Con Leche Index has risen six of the past 12 weeks.
During that period, the cost climbed from 5,500 bolivars to 45,000 bolivars.
That’s an increase of 718 percent. Translated into an annualized pace, it comes
to 448,025 percent. (As breathtaking a figure as this is, it is still a far cry
from the worst hyperinflation episodes in history, like those in Hungary in the
1940s or Zimbabwe last decade.)The index’s explosion underscores how the
socialist government’s frantic bid to goose the economy by printing reams of
cash is only adding to the chaos and suffering in the country. Inflation had
been alarmingly high in recent years but nowhere near the current pace. The
Cafe Con Leche Index -- which Bloomberg created after the government stopped
releasing most economic indicators -- put the rate at 1,718 percent at the end
of 2017. More… 
Thursday, January 18, 2018
Venezuelan Hyperinflation Explodes, Soaring Over 440,000 Percent
The price of a cup of
coffee in Bloomberg’s Cafe Con Leche Index has risen six of the past 12 weeks.
During that period, the cost climbed from 5,500 bolivars to 45,000 bolivars.
That’s an increase of 718 percent. Translated into an annualized pace, it comes
to 448,025 percent. (As breathtaking a figure as this is, it is still a far cry
from the worst hyperinflation episodes in history, like those in Hungary in the
1940s or Zimbabwe last decade.)The index’s explosion underscores how the
socialist government’s frantic bid to goose the economy by printing reams of
cash is only adding to the chaos and suffering in the country. Inflation had
been alarmingly high in recent years but nowhere near the current pace. The
Cafe Con Leche Index -- which Bloomberg created after the government stopped
releasing most economic indicators -- put the rate at 1,718 percent at the end
of 2017. More… 
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment