Due to the recent hyperinflation crisis in Venezuela, the average inflation rate in Venezuela is estimated to be around 225 percent in 2026. However, this is well below the peak of 63,000 percent observed in 2018.What is hyperinflation?In short, hyperinflation is a very high inflation rate that accelerates quickly. It can be caused by a government printing huge amounts of new money to pay for its expenses. The subsequent rapid increase of prices causes the country’s currency to lose value and shortages in goods to occur. People then typically start hoarding goods, which become even more scarce and expensive, money becomes worthless, financial institutions go bankrupt, and eventually, the country’s economy collapses. The Venezuelan descent into hyperinflationIn Venezuela, the economic catastrophe began with government price controls and plummeting oil prices, which caused state-run oil companies to go bankrupt. The government then starting printing new money to cope, thus prices rose rapidly, unemployment increased, and GDP collapsed, all of which was exacerbated by international sanctions. Today, many Venezuelans are emigrating to find work and supplies elsewhere, and population growth is at a decade-low. Current president Nicolás Maduro does not seem inclined to steer away from his course of price controls and economic mismanagement, so the standard of living in the country is not expected to improve significantly anytime soon.

For the fourth consecutive year, Venezuela recorded growth in purchases abroad of process control, gate, globe and other valves, which increased by 6.8% to 1.3K tons in 2023.

Venezuela PPI: Laspeyres: WT: Electric Motors, Generators & Transformers & Electric Power Distribution & Control Devices data was reported at 321,345,148.217 2007=100 in Jan 2019. This records an increase from the previous number of 207,319,450.462 2007=100 for Dec 2018. Venezuela PPI: Laspeyres: WT: Electric Motors, Generators & Transformers & Electric Power Distribution & Control Devices data is updated monthly, averaging 301.727 2007=100 from Jan 2007 (Median) to Jan 2019, with 145 observations. The data reached an all-time high of 321,345,148.217 2007=100 in Jan 2019 and a record low of 93.901 2007=100 in Jan 2007. Venezuela PPI: Laspeyres: WT: Electric Motors, Generators & Transformers & Electric Power Distribution & Control Devices data remains active status in CEIC and is reported by Central Bank of Venezuela. The data is categorized under Global Database’s Venezuela – Table VE.I013: Producer Price Index: 2007=100.

In 2024, after six years of growth, there was significant decline in the Venezuelan remote control apparatus market, when its value decreased by -17.8% to $229M. In general, consumption enjoyed a resilient increase. As a result, consumption attained the peak level of $279M, and then contracted notably in the following year.

The Consumer Price Index gauges the price changes in a basket of goods and services in a defined time period. In Argentina, the CPI in April 2024 was 289 percent higher than the one registered the same month of the previous year, with this figure being the largest monthly inflation rate since, at least, the beginning of 2018. The Argentinian inflation rate has been experiencing a steep increase from December 2020 onwards, when the decreasing trend witnessed since December 2019 came to an end. Long history of inflation in Latin America High inflation rates are nothing new in Latin America. In 2023, the region's inflation rate was 14.41 percent, while the global average was much lower at 6.78 percent. Nonetheless, the main drivers of this are Venezuela and Argentina, both being in the upper table of countries with the highest inflation rates in the world. During the last few years, Venezuela entered a period with five-digits inflation rates, having to issue a new currency and implementing new policies to control price increases.

A history of hyperinflation During the last couple of years, inflation has been a constant among the main problems the Argentine society faces. The country returned to a three-digit inflation rate with former president Alberto Fernández, and the constant price increases took a toll on households across the board. Nevertheless, the problem is far from a recent one or the worst it's ever been, in 1989 and 1990, the inflation rate was over 2,000 percent, reaching for the status of hyperinflation. Commonly, hyperinflation is defined as price increases with over 50 percent per month.