Inflation in Venezuela slows down in October to 6.2% monthly

Inflation in Venezuela in October closed at 6.2% and slowed compared to the previous month when prices had a variation of 28.7%, according to data released on Friday by the central bank.

The behavior of inflation in October was due to the continuity of an orthodox policy of the government of the president of Nicholas Maduro to maintain the stability of exchange rate through the high injection of foreign currency in the foreign exchange market and the restriction of public spending and loans.

With the October result, year-on-year inflation stood at 155.79%, according to Reuters calculations based on official figures, and it is still the highest inflation in the Latin American region.

The sectors with the largest price jumps in October compared to the previous month were education services with 18.3% and communications with 9.6%, according to data from the issuer.

Accumulated inflation in 10 months was 119.4%, according to official information.

In September, prices increased sharply due to the fact that for several weeks the government disbursed more resources and the bolivar depreciated, then the authorities made adjustments to spending and sold more foreign currency in cash at local banks, according to analysts.

Official policy also limits credit authorizations, which is why some businessmen have sought loans abroad. High prices coupled with dollarization have severely widened the wage gap between public and private sector workers. A minimum salary is equivalent to about 15 dollars, and has not been revised since last March.