In Venezuela, the annual rate of increase in consumer prices was close to 4000 percent in March, and due to hyperinflation, the country’s central bank issued banknotes in higher denominations than ever before. To issue Forced last month, MTI writes.
The Financial Monitor, run by the opposition, estimates annual inflation at 3876% in March, compared to 2,665% in January.
The Venezuelan Central Bank said in February that inflation stood at 2959.8% last year, down from 9,585.5% in 2019, also calculated by the central bank.
The Venezuelan government has not released inflation data for years.
Due to hyperinflation, in mid-March, the Venezuelan Central Bank issued three new banknotes, 200,000, 500,000 and 1 million Bolivians. The latter is the highest denomination of banknotes in circulation, with a value of $ 0.52. Until the issuance of the new banknotes, 10,000, 20,000 and 50,000 Bolivian cities were in circulation.
In its latest global spring report released on Tuesday, the International Monetary Fund has predicted that inflation in Venezuela will reach 5,500% this year and next, after accounting for 2,355% last year.
After falling by 30 percent last year, the International Monetary Fund slashed GDP to 10 percent this year and 5 percent next year. Meanwhile, the unemployment rate could rise from 55.5% last year to 58.4% this year and to 60.1% in 2022, according to projections by a Washington-based organization.