The nation of South America, Venezuela was hit by inflation long ago whose annual rate has reached 8, 30, 000 percent in the October of this year. The data which certified the current inflation rate was released in the parliament of the country this week.
The report which was published by the coalition of the opposite party stated that the annual rate of inflation has almost doubled in the time since the publishing of the last report. In the month of September of the current year, the rate of inflation was 4, 88, 000 percent.
However, the monthly inflation dropped to 147 percent in the month of October, which in the month of September was 233 percent.
Despite the apparent trouble due to the figures for the Venezuela, things are going to get worse. The International Monetary Fund is arguing that the annual inflation rate of the country for this year will pass 1 million percent.
The director of the IMF’s Western Hemisphere Department stated in a blog post in July that the neighbouring countries will bear an intensifying effect due to the collapse in the economic activity, the hyperinflation and the increasing deterioration of Venezuela.
The current situation of Venezuela is comparable to the hyperinflation witnessed by Zimbabwe in the early 2000s and by Weimar of Germany after the World War 1.
According to Reuters the aggressiveness of hyperinflation might increase in the final month of the year.
The reason behind this is that the workers of the public sector are granted bonuses before the holiday season in order to boost their purchasing power and as a result of this push the prices of the goods even more.
An executive order signed by the president of the United States, Donald Trump bars Americans from dealing with the people as well as entities which are involved with deceptive or corrupt gold sales from Venezuela.
Source: TheBusinessInsider, TheInformer
