Venezuela Inflation Soars Above 500% as Trump Steps Up Pressure
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Shoppers pass by a street vendor hawking stuffed toys in Caracas. Source: BloombergArticle content(Bloomberg) — Venezuelan inflation is skyrocketing as US President Donald Trump ratchets up his campaign to financially isolate the socialist regime in Caracas.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe inflation rate soared to 556% in the 12 months through Dec. 17, up from 219% at the end of June and 45% in 2024, according to a weekly index compiled by Bloomberg News.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentThe gauge, while rudimentary, given it only measures the price of a single product (a cup of coffee sold at a Caracas bakery), serves as the best real-time proxy for inflation in a country that stopped releasing data regularly a decade ago to mask its economic collapse. Article contentArticle contentFor months, Trump has been stepping up pressure on the country in a bid, in part, to oust the long-time socialist leader Nicolas Maduro. On Tuesday, Trump ordered a blockade of sanctioned oil tankers going in and out of the country, a move that stands to further throttle the local energy industry and choke off the government’s main source of hard currency. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article content“The shock to them will be like nothing they have ever seen before,” Trump wrote in a social media post.Article contentInflation, to be clear, has been far higher in Venezuela at different times in recent years. The Bloomberg index, which was launched in 2016, has posted annual readings of well over 100,000%. Article contentMoreover, many Venezuelans are immune to the surge in prices in bolivars. Tired of using a currency whose value was constantly eroding, scores of Venezuelan businesses started to both pay staff and demand payment from customers in dollars. Today, an estimated 90% of private-sector workers earn in dollars, helping them maintain their purchasing power.Article contentBut for government workers, pensioners and all other Venezuelans who are paid in bolivars, the inflation spike represents the latest blow in a crisis that’s pushed millions to flee the country. Article contentTrending 'Why let one person in the States change your life?' For Canadian snowbirds, the stay or go dilemma gets complicated Real Estate Canada's population declines for the first time since the pandemic News Is a $2.75 million portfolio enough for Halifax empty nesters to retire early?
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Personal Finance World watches as Ottawa's bullish shift on LNG puts wind at the back of two major projects Oil & Gas Expect 'dramatically higher' oil prices in 2026, says Eric Nuttall Oil & Gas