Sunday, March, 8 2026 - Inflation in Venezuela surged to about 475 percent in 2025, the highest rate in the world, according to figures released by the country’s central bank.
The sharp rise in prices was largely driven by economic
pressure linked to tighter sanctions imposed by the United States during the
final period of rule by former president Nicolas Maduro. Data published on
Friday, March 6, by the Central Bank of Venezuela showed that full-year
inflation far exceeded the International Monetary Fund forecast of 269.9
percent.
The bank also reported that accumulated inflation during the
first two months of 2026 had already reached nearly 52 percent, although it did
not provide an outlook for the rest of the year.
Venezuela’s economy was heavily affected by Washington’s
“maximum pressure” campaign against Maduro’s government. The United States
eventually removed the longtime socialist leader from power in a military
operation in Caracas on January 3, after years of political tension and
sanctions.
Following Maduro’s ouster, Washington eased some sanctions
and began discussions with Caracas about restoring diplomatic relations and
cooperating on the development of the country’s oil and mineral resources.
Despite the political shift, many Venezuelans say they have
not yet seen relief from soaring prices for everyday goods. “I have to hop from
one supermarket to another. It shouldn’t be like this,” said Alix Aponte, a
58-year-old accountant shopping for vegetables in Caracas, calling for salary
increases.
Economists say the situation remains difficult for
households, with average monthly incomes estimated to range between $100 and
$300, far below the cost of basic necessities.
According to the central bank, food and drink prices alone
rose by 532 percent last year, while rent increased by 340 percent and
healthcare costs climbed by 445 percent. Eduardo Sanchez, a leader of the
teachers’ union, criticised the country’s economic policies, saying: “This
inflation is killing us.”
Economists had previously warned that Venezuela risked
returning to hyperinflation, defined as monthly price increases of 50 percent
or more, similar to the crisis that gripped the country between 2017 and 2021.
Memories remain vivid of the country’s worst economic
collapse in 2018, when prices soared by roughly 130,000 percent and millions of
people fled the country.
By 2024 inflation had dropped to around 48 percent, a
turnaround many analysts attributed partly to reforms introduced by Maduro’s
former deputy, Delcy Rodriguez, who is now serving as the country’s acting
leader.
Rodriguez stabilised the economy through tighter fiscal
discipline, halting the printing of money, easing exchange controls and
allowing wider use of the US dollar, which has effectively become Venezuela’s
main currency.
She has since launched an economic reform programme aimed at
attracting foreign investment, opening the oil sector to private companies and
revising mining laws to encourage investment in strategic minerals.
Tamara Herrera, director of the consulting firm Sintesis
Financiera, said she expects inflation to fall to just over 100 percent this
year. “Going forward, the inflation expectation is toward moderation,”
economist Jesus Palacios said.
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