Weekly Report - 14 July 2011 (WR-11-28)

VENEZUELA | Inflation unrelenting. Inflation hit 13% in the first half of 2011, the central bank reported. This means Venezuela is on course to post inflation similar to the 27.2% recorded in the whole of 2010, by far the highest in the region. Inflation in June amounted to 2.5%, higher than expected, after the government raised the price caps on basic foodstuffs, such as bread, milk and sugar to avoid shortages after January’s 40% devaluation left imports significantly more expensive. The government also doubled the metro tariff, the first such fare increase since 2006.