Venezuela the only country where inflation lashes the poor the most
From Suhelis Tejero Puntes | El Universal
Eclac: Real average wage down 6.4% since 2005
Based on the records of the National Statistics Institute of Venezuela (INE), households pay 44.7% more on food with respect to last year (Reuters)
Fairer distribution of national income has not been enough to solve the imbalance of the Venezuelan economy, which lashes the most vulnerable sector of society: the poor. The information has been disclosed by the Economic Commission for Latin America and the Caribbean (Eclac) in its Economic Survey of Latin America and the Caribbean 2013.
The organization measured inflationary adjustments adversely affecting the poor as against the rich. In this context, Venezuela appears as the South American country where rampant inflation lashes the poor the most, that is, the individuals whose largest expenses are those in food, particularly products whose inflation adjustment are among the highest.
In this regard, Eclac called on Latin American and Caribbean governments to take the necessary steps, and warned pressure on prices may continue bringing higher rates of inflation and poverty.
Based on the records of the National Statistics Institute of Venezuela (INE), households pay 44.7% more on food with respect to last year.
Although Eclac notes Venezuela’s effort to improve distribution of national income, and acknowledges that increasing wages benefited low-income families, it still points out that the escalation of prices is detrimental to these families.
The commission states that unlike the rest of the countries, prices in the Dominican Republic and Venezuela shifted from 4.5% to 5% and 31.9% and 33.7%, respectively in 2008-2013. The report includes data until May this year.
Regarding wages, Eclac underscored that efforts to adjust them in Venezuela have been insufficient, and outlined that the nation is the only one in Latin America where the real average wage has declined, 6.4% from 2005 to the first quarter of 2013.
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