. Energy News .

Venezuelans worry over high inflation
by Staff Writers
Caracas, Venezuela (UPI) Aug 11, 2011

disclaimer: image is for illustration purposes only

As Venezuelan President Hugo Chavez undergoes cancer treatment in Cuba, the national economy's management he left in the hands of his trusted stewards is proving to be another test of nerves for economists, investors and ordinary consumers alike.

With little sign of a two-year recession dissipating in response to consumer demand, official data indicated Venezuela's price index rose 2.7 percent in July for a cumulative 25.1 percent in 12 months.

Drought and electricity and water shortages have taken a toll on Venezuela's economic performance from 2009 onward, making it the only Latin American country to suffer two years in succession of recession. Revenue from Venezuela's oil exports hasn't been enough to stimulate the economy.

The economy's partial stagnation was reflected in the housing services' performance, which dropped during the period, and in the slow growth of the communication sector, usually an indicator of economic activity.

Chavez has been receiving treatment for cancer since June but has ceded only a few presidential responsibilities to trusted aides, keeping close watch on decision-making and on approving items of budget spending.

The president had a large tumor removed by doctors in Cuba in June, followed by a round of chemotherapy in July. Despite overwhelming support for Chavez in the National Assembly and outside it, there have been rumblings of dissent over his preference for keeping nearly all presidential powers for himself rather than delegating responsibilities to aides.

There was little indication in the official media if the government intends to deal with the inflationary spiral while Chavez is in Cuba.

The increase in consumer prices in Venezuela for the first seven months of the year stands at 16 percent, below the 18 percent for the same period of 2010 but the inflation figure for the 12-month period has reached 25.1 percent, the highest in Latin America, official data indicated.

Food and beverage prices reported the strongest increase with 4.8 percent, a result of price liberalization after many years of heavy subsidies that kept the prices low as part of the populist president's tireless campaign to win over friends, analysts said.

Chavez has indicated he intends to run again in next year's presidential election to seek a further six-year term.

However, despite Venezuela's oil earnings, the countrywide income disparities showed economic activity made little impact on reducing poverty or easing the burden of rising food prices on more than 70 percent of the population.

A series of nationalizations, popularized as part of the government's effort to redistribute wealth among the poor, have had the effect of damaging industrial performance and stagnating growth in many sectors of the economy, analysts said.

Related Links
Powering The World in the 21st Century at Energy-Daily.com

Get Our Free Newsletters Via Email
Buy Advertising Editorial Enquiries

. Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

Peak Oil And Public Health: Political Common Ground
Washington DC (SPX) Aug 12, 2011
Peak petroleum-the point at which the maximum rate of global oil extraction is reached, after which the rate of production begins to decline-is a hot topic in scientific and energy circles. When will it occur? What will the impact be? While geologists and economists debate the specifics, American University School of Communication professor Matthew Nisbet believes peak petroleu ... read more

Berlin considers Austrian power supply ahead of winter

Iraq power plans short-circuit

Boeing And Siemens Form Strategic Alliance for DOD Energy Modernization

Iraq PM moves to fire minister over power deals

China's appetite for oil imports increases

Oil higher in Asian trade

China coal mine blast kills 10: official

Bright light for fuel cell market

ACS Group sells Spain wind farm portfolio

Offshore wind power in the North Sea offer huge potential but enormous challenges

Scotland offshore wind farm ready to go

US fund Blackstone plans two big German wind farms

World's biggest solar boat docks in Hong Kong

New phase completed on Ukraine solar plant

Hybrid solar system makes rooftop hydrogen

Largest solar plant approved for Calif.

Status of nuclear power 2010

Japan to set up new nuclear watchdog

Germany's EON hit by historic quarterly loss, plans job cuts

Japan's TEPCO reports loss of $7.4 billion

Metabolism in reverse: Making biofuels at full-throttle pace

To avoid carbon debt CRP beats fields of corn and soybeans

Report: Algae as fuel presents problems

High Energy Output From Algae-Based Fuel No Silver Bullet

Toys for Tiangong

Why Tiangong is not a Station Hub

China to launch experimental satellite in coming days

Spotlight Time for Tiangong

Border town a break for drought-fleeing Somalis

UCI studies find different reasons for global methane riddle

Species affected by climate change: to shift or not to shift?

Ocean probes to help refine climate change forecasting

Memory Foam Mattress Review
Newsletters :: SpaceDaily Express :: SpaceWar Express :: TerraDaily Express :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

The content herein, unless otherwise known to be public domain, are Copyright 1995-2011 - Space Media Network. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement