(MENAFN) Preliminary official report estimated Venezuelan inflation to have reached 19.9 percent in 2012, Reuters reported.
The figure, which was reported by the central bank, is below the government's 2012 target of between 22 percent and 25 percent, thanks to strict price controls that business leaders say are unsustainable in the long term.
The government of President Hugo Chavez has capped prices for a wide range of consumer goods, helping contain inflation that has traditionally been the highest in Latin America.
However, the central bank expects inflation to increase next year because Venezuela is expected to devalue the bolivar currency after heavy campaign spending this year that helped ensure Chavez's re-election.
Devaluing pushes up the cost of importing basic consumer goods that are not produced in the oil-dependent country.
In late 2011, the government extended a system of controls that now regulate prices of products ranging from deodorant to meat while fixing profit margins.
But business leaders say the controls have kept prices artificially low, and that inflation is likely to bounce back.
Authorities on Thursday released preliminary estimates showing the country's economy grew 5.5 percent in 2012, with the construction sector among the fastest-growing thanks to a state homebuilding program.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.