While Venezuela is not a Caribbean nation, economic conditions there bear watching because of Venezuela’s energy trade activities in the region. Two years ago, when Bloomberg launched the Cafe Con Leche Index, a coffee cost 450 bolivars in Caracas, Venezuela. Now, the same cup of coffee costs one million bolivars. That price amounts to almost one-fifth of a Venezuelan’s monthly minimum wage. Yet, when converted into U.S. dollars, it comes to a mere 29 cents.
This contrast — a coffee burns through much of a worker’s entire monthly wage but costs just pennies — illustrates the devastating effects of Venezuela’s money-printing policies and how the country is sinking deeper into poverty.
Inflation over the past 12 months in Venezuela climbed to 43,378%. And if you examine a snapshot of the past three months and project that pace out to a full year, it paints an even grimmer picture: inflation of 482,153%. Wow…
Sourced from Bloomberg