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Venezuela purchasing power down by 10pct in June

Steel News - Published on Thu, 18 Jul 2013

It is reported that Venezuela\'s minimum wage was increased by 20% on May 1st to USD 390, yet soaring prices have made such increase lose strength rapidly.

In May to June 2013, inflation shot up reducing purchasing power by 10%.

Data from the Central Bank of Venezuela said that since May 1st prices have swollen 17% in the case of food, 11.2% in transport, and 9% in clothing.

Fully aware that inflation may record a significant hike this year, the Venezuelan government announced further additional increases in the minimum wage in September (10%) and November (5-10%).

In other words, the total increase in the minimum wage will be 38% to 45% in 2013.

In the best case scenario, this will help preserve the purchasing power rather than improve it, as inflation this year has been estimated at some 50%.

According to the BCV, the price of regulated commodities soared 20.6% in the H1 of 2013, tripling that of January to June 2012, and the highest in years.

Further, inflation in the H1 was 25%. Should this trend remain unchanged in the H2, inflation is likely to hit 56% this year.

Source - www.eluniversal.com

(www.steelguru.com)

Posted By : admin on Thu, 18 Jul 2013
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