March inflation lowest since 2001 at 0.8%

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Wednesday, April 02, 2003 By: Robert Rudnicki

Venezuela's Consumer Price Index (CPI) rose by only 0.8% in March, compared with 5.5% in February, the lowest rise since 2001.

The small increase was largely due to maximum price controls imposed by the government on a wide variety of basic goods, as officials sought to fight off the effects of spiraling inflation brought about by serious economic woes and the two month long opposition work stoppage which cost the nation's economy over $6 billion.

According to Central Bank of Venezuela (BCV) figures, the price of goods coming under maximum price controls actually fell by an average of 1.5%, compared to February's rise of 3.4%, while goods not covered by the controls rose by an average of 3.9%, well below February climb of 8.1%. March's increase takes the cumulative total for the year up to 9.4%.