Prices in Venezuela have increased significantly even when using foreign currency. According to data collected by Ecoanalitica, a market research company, the prices paid in dollars have increased by almost 54% in 2022, affecting the income and income of Venezuelans using the US dollar. to hedge against inflation.
Prices Are Rising Even In Dollars in Venezuela
Prices have increased in Venezuela, the prices of goods and services are recorded even when payments are made in dollars. Asdrubal Oliveros, an economist and partner at Ecoanalitica, a market research firm, said that the value of the dollar will rise by almost 54% in 2022, affecting inflation. beating the city now. One of the most affected items was food and beverages, which saw a price increase of 66.7%.
In the same way, prices in the area of food and accommodation, combined with national and international tourism, increased by 95%, making this sector the sector with the highest increase. Being paid in the country’s fiat currency, the rate of inflation worsened, and the price of food and drink rose 150% during the same period.
The country recently emerged from a period of hyperinflation that began in 2017 and ended in January. 2022, when the country recorded 12 months with a monthly inflation rate below 50%.
Unauthorized Dollarization Process
Although many shops still accept bolivars, the local currency, as a payment, for some time now the prices have been in simple dollars to make the goods and price control easier. Dollar payments are falling after the government proposed and established a tax on its use in March, but the US dollar is still used as a single account.
This price increase, often called the “dollar price,” now affects the income of many Venezuelans who, like Argentines, have resorted to foreign currencies and dollar-pegged stablecoins to prevent inflation. The Bolivar faced a downward trend in the last two months of 2022, falling to historic lows and worsening for other stable currencies.
The company expects this trend to continue, with prices increasing significantly in 2023. This may change, however, depending on the openness of the Venezuelan government to adopt another dollar peg system.