Venezuela's food inflation trebles Latin American average

[naaman fletcher]

The high food prices hitting Venezuelan households exceed by far those in the rest of Latin American countries, according to the Food and Agriculture Organization of the United Nations (FAO).

Between February 2011 and February 2010, food prices climbed 37.3 percent in Venezuela, while the Latin American average food inflation is 8.8 percent, based on a statement prepared by the FAO to disseminate its quarterly newsletter.

The Latin American countries with the highest annual inflation rates at the end of February were Venezuela, followed by Paraguay (17.1 percent), Bolivia (17 percent) and Argentina (10.6 percent), while inflation in Colombia, Mexico and Peru was below 5 percent.

Food inflation in Venezuela is due to a combination of factors including local issues such as currency devaluation and supply deficit, as well as global factors such as price hikes of imported products.

http://english.eluniversal.com/2011/04/15/venezuelas-food-inflation-trebles-latin-american-average.shtml

[joshcryer]

1. Venezuela needs to take a class in Keynesian economics and understand demand pull inflation.