IMF estimate: Inflation in Venezuela could reach 720 per cent

Venezuela's inflation rate could balloon to as much as 720 per cent this year, an International Monetary Fund official said Friday.

Alejandro Werner, director of the fund's department for the Western Hemisphere, also said the South American country's economic performance could fall by a further 8 per cent.

Prices already rose by 275 per cent last year, giving Venezuela the distinction of having the highest inflation rate in the world.

The country with the largest oil reserves has been suffering badly from the low price of oil, which is currently trading at under 30 dollars a barrel.

A lack of convertible foreign currency has lead to shortages of food and other items, said Werner.

Socialist President Nicolas Maduro has said an economic war aimed at his country is responsible for its problems.

Last update: Sat, 23/01/2016 - 01:37

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