The price of products in Venezuela shot up 50% compared to last year, according to Ecoanalítica

Fotografía de archivo del mostrador de una tienda con productos nacionales e importados en el mercado municipal de Quinta Crespo en Caracas (Venezuela). EFE/ Rayner Peña

 

 

 





 

The increase in prices of food in U.S. dollars in Venezuela during 2022 is estimated to be 50% year to year, according to Ecoanalítica, a company dedicated to macroeconomic analysis and strategic planning.

Correspondent lapatilla.com

The economist Asdrúbal Oliveros, manager and partner of Ecoanalítica, highlighted that the increase in products in U.S. dollars has an impact on the pockets of Venezuelans, who are forced to restrict their shopping because of low purchasing power.

“Family incomes could rise at best 20% – 25%, while things increased by 50%. They have a significant loss of purchasing power that leads them to restrict consumption and stop buying products,” he pointed out.

Mr. Oliveros remarked that this 2022 they estimate an economic growth of 9% nationwide. He specified that the food sector had a 20% recovery, which he considered a favorable point for the plains region, as it is an agro-productive area.

“In a country that went through a very deep crisis like Venezuela and has a population that has become significantly impoverished, the core purchase for people is food. As his purchasing power improves, what Venezuelans mainly do is buy food,” he explained.

The economist also referred to the “uncertainty” surrounding the rise of the “parallel” dollar (unofficial exchange rate), which he said affects both merchants and consumers.

“For the merchant, the one who produces, it is an issue that weakens his ability to replace (restock) merchandise, which is a central element for which you need foreign currency. Meanwhile, what people notice is impoverishment, because in the end things go up aggressively, since the dollar keeps increasing and makes their purchasing power decrease,” he explained.

This Friday morning,November 18th, Oliveros participated in a forum on the prospects of the Venezuelan economy for 2023, an event organized by the Chamber of Commerce of the Roscio Municipality, in San Juan de los Morros, capital of the Guárico State.