Prices of agricultural products up 18.7% in eight months

[naaman fletcher]

I'm sure "the people" just love this.


http://www.eluniversal.com/2011/09/08/prices-of-agricultural-products-up-187-in-eight-months.shtml

According to the Central Bank of Venezuela (BCV), steady price hikes are concentrated in food items, health care, and transport costs. These economic variables seriously hit the quality of life of low- and middle-income households.

In the first eight months of the year, food prices climbed 22.9% on average; medical and paramedical services, including dental consultations and treatments rose 22%; hospital services (29%) and transport (19.7%).

...

Hugo Faría, an economist and professor of the Institute of Higher Administration Studies (IESA), a Venezuela's school of management, said that "the evidence suggests that price controls do not solve the inflation problem because the root of the problem is the fact that the issuance of money exceeds production."

Government's spending pumps money into the economy, and more money to purchase the same amount of goods results in increased prices.