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According to the monthly report by the Central Bank of Venezuela (BCV), the Consumer Price Index (IPC) in the Metropolitan area of Caracas, varied 1.7%, higher than the variation in October (0.6%), and slightly lower than the one for October of 2003 (1.9%). With this result, the accumulated variation of the IPC until November of 2004 reached 17.3%, considerably lower than the 24.8% rate for 2003.

According to the BCV, the rise in the monthly price variation rate was a result of the acceleration of prices on non-regulated products from 0.5% to 2.7%. The variation rate for regulated goods and services remained at 0.7%, despite the adjustments of prices authorized by the government.

The manager of economic statistics, Luis Armando Rodríguez reported that non-regulated prices increased more sharply for food items, with a 6.6% variation, especially on agricultural products, after negative variations in the two previous months, as a result of a greater supply.

The increase in the monthly variation of the IPC in November is mainly related to increases in 5 of the 13 groups in the index: food and non-alcoholic beverages, from -0.2% to 3.7%; home appliances, from 0.2% to 3.0%; alcoholic beverages and tobacco, from 0.8% to 2.6%; clothing and footwear, from 0.4% to 1.6%, and various goods and services from 0.2% to 1.0%.

The impact of these increases was attenuated by the decelerations in four groups: restaurants and hotels, from 1.7% to 1.4%; health services, from 1.3% to 0.8%; educational services, from 1.9% to 0.4%, and communications, from 0.7% to 0.0%.

The results above as a whole, caused a considerable rise in the monthly variation rate, from 0.1% to 2.3%; while services, repeated last month’s 1.1% variation The increase in the variation rate was also reflected on the 1.5% inflation rate, higher than the 1.0% registered for last month .

The rise of this index was mainly a result of increases in the prices of both of elaborated foods, from 1.4% to 2.6%, and of textiles and clothing, from 0.4% to 1.5%.

Published in Quantum N.43