Venezuela finally got out of the hyperinflationary cycle into extremely high monthly inflation
After 12 months of consecutive inflation that is below 50%, some analyst / media started to declare that Venezuela is finally out of the hyperinflationary cycle.
Venezuela came out of the hyperinflationary cycle in which it had been since 2017, accumulating 12 continuous months below 50% inflation, after registering 7.6% in December, the Bank reported this Saturday Central.
The figure notified by the Central Bank of Venezuela (BCV) makes December 2021 the fourth consecutive month with a single digit figure, after inflation rose 7.1% in September, in October a 6.8% and 8.4% was recorded last November.
December 2020 was the last month in which the INPC registered an increase of more than 50%, specifically 77.5%.
However, it is still important to note that, while the last 3 months of 2021’s monthly inflation is now kept below 10%, the full year inflation for 2021 is still 686.4% – which for any country, this would still be considered as “hyperinflation”.
But when we compare it to 2020’s inflation, which was nearly 3000% at 2959.8% inflation, according to Venezuela’s central bank, it is indeed a lot lower. If the trend of single digit inflation can continue throughout 2022, we may very well see the country’s inflation rate going below 300% inflation for the year of 2022.