Venezuelan's price controls become more flexible as shortages grow 

www.vheadline.com Posted: Sunday, March 09, 2003 By: Robert Rudnicki

The government is currently reviewing its price control system on many basic food supplies as the maximum prices that were recently imposed have proved to be too low in some cases, cutting profit margins to such an extent that it has become uneconomical for producers to manufacture the goods and as a result shortages have appeared.

• In response to the shortages soldiers manned stalls at outdoor markets selling basic food supplies at discount prices.

The cost controls were introduced as inflation pushed the price of goods higher, causing the government to become increasingly concerned about the ability of poor Venezuelans to buy their basic needs.