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Venezuela’s inflation slows down to lowest in almost a decade -Breaking


© Reuters. FILE PHOTO – A Venezuelan local creates a price list in a Caracas commercial centre on March 14, 2019, Venezuela. REUTERS/Ivan Alvarado

CARACAS, (Reuters) – Venezuela’s inflation fell further in March to 1.4%, the lowest point in nearly a decade according to data released Wednesday by Central Bank.

Although the South American nation’s price index rose 2.9% in February it has been showing slower increases since President Nicolas Maduro relaxed foreign exchange controls. This allowed for more currency circulation, leading to stable prices.

At the end March, prices had risen by 284.4% over the previous 12 months. However, inflation for the first quarter of this year was 11.4% according to Reuters calculations based purely on official data. These numbers show that rising prices continue to be a major problem facing many families across the country.

Venezuela experienced hyperinflation until last year. The minimum wage is $30 per month.

The data shows that inflation rose in March due to higher prices for communication and education services.

Maduro has announced that a tax in operations in hard currencies could help reverse inflation’s decline. This is a measure to raise the government’s income.

Venezuela’s Finance Observatory reported this week that there were problems with the implementation of the tax by companies and stores. They also stated that it is causing higher prices.