Key facts
- Venezuela's monthly inflation rate fell to 8.9% in August.
- The previous month's inflation rate was 19.9%.
- Year-on-year inflation stood at 534.21%.
Venezuela's monthly inflation rate slowed to 8.9% in August, down from 19.9% in the prior month, according to data released by the central bank. The year-on-year inflation rate was calculated at 534.21%.
Venezuela has a long history of economic instability and hyperinflation, with the crisis beginning in 2016. Factors contributing to this include government policies, currency devaluations, and extensive money printing. While the country has technically exited hyperinflationary cycles at times, the consequences of sustained high inflation, such as declining real wages and shortages, persist. The consumer price index in Venezuela is heavily weighted towards food and non-alcoholic beverages (32.2%), transportation (10.8%), and housing rental (9.8%).