The IMF predicted inflation in Venezuela more than 1,600% – RBC

At the grocery store in Caracas

Photo: Reuters / Pixstream

According to the IMF, inflation in Venezuela may exceed 1600% in 2017. The situation in the country, according to the Fund, compounded by political uncertainty and renewal

Consumer price inflation decline in oil prices in Venezuela at the end of this year may reach 480%, and up to 2017 – already 1640%. This is evidenced by data from the International Monetary Fund (IMF), which refers to The Wall Street Journal.

Venezuela suffers from a shortage of food in the shops, and medicines. On the government gave the military control over the food stocks last week, thereby giving more power to the armed forces, the newspaper reminds.

«The lack of hard currency has led to a shortage of intermediate goods and widespread, including shortage of essential commodities food, “- said in his blog, Alejandro Werner, head of Western Hemisphere IMF

According to the IMF review, political uncertainty and renewed decline in oil prices have aggravated the current situation of macroeconomic indicators in Venezuela

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Caracas has terminated its relationship with the IMF a decade ago, but economists admit that in this situation, the Venezuelans have to ask for financial assistance from the Fund, writes WSJ.

The IMF Harry Rice told the publication that the fund called Caracas to restore relations, but Venezuelan authorities have not responded to it.

Even if Venezuela will ask for help from the IMF, given that have not had the opportunity to get acquainted with the country’s finances for several years Foundation, “it will be difficult to give advice without of substantial discussion, “adds Rice.