By Mayela Armas

CARACAS, (Reuters) – Venezuela’s 2021 annual inflation rate was 686.4%. This indicates a slower consumer price increase than the 2,959.8% inflation in the past year, according to Saturday’s statement by the central bank.

In December, there was an increase of 7.6% in monthly inflation. The inflation rate has not changed since September.

Prices have fallen in line with government policies that include a restriction on credit and lower spending of bolivars in order to preserve the stability of exchange rates.

This strategy led to the payment of suppliers by government bodies and PDVSA, a state-owned petroleum company.

In a broadcast to state TV at the beginning of March, Nicolas Maduro stated that hyperinflation (which lasted for nearly four years) had been eliminated.

Even with measures taken to control inflation and improve supply, Venezuelans still face high prices. This limits their purchasing power and reduces the ability to purchase food, medicine, and other necessities. An equivalent monthly minimum salary to $1.50 is required.

Venezuela’s economy was in crisis and Venezuela’s government eased its controls to allow more foreign currency to flow. Some sectors were able breathe easier.

The data on economic growth in the country have not been released by the central bank.