Soaring food costs deepen Venezuela's economic crisis

Economic instability in Venezuela after a U.S. raid to capture its president has deepened inflation and rattled the currency, sending grocery bills soaring for millions of people, the New York Times reported. Residents described frantic spending on paydays and rapidly rising prices: Nair Granado said she rushed to buy groceries after receiving a $60 paycheck and that meat had risen to more than $9 per pound, nearly doubling in a few days.

The article said Venezuela’s heavy reliance on the U.S. dollar for everyday transactions, combined with new U.S. sanctions that reduced oil sales and dollar flows, pushed the unofficial “parallel” dollar to about twice the official rate this past week, and store prices have not fallen in step.

Economists and surveys cited in the reporting warned of a deepening crisis: a survey by Venezuelan universities found more than 70 percent of people live in poverty, a Gallup poll showed three in five struggled to afford food last year, and José Guerra, an economist, estimated inflation could reach 2,000 percent this year.

The minimum monthly wage is equivalent to roughly 50 cents, and government bonuses to public workers have also lost value as the bolívar weakens. The humanitarian impact is visible on the ground: soup kitchens and community projects have been forced to close after new restrictions on nongovernmental groups, government food baskets are frequently delayed, and shoppers reported buying less or skipping grocery trips.

Key Topics

World, Venezuela, Nicolas Maduro, Us Dollar, Us Sanctions, Parallel Dollar