In the past 12 months, inflation has climbed to reach 43,378 per cent in Venezuela. The soaring prices have made it extremely difficult to even grab a coffee. Less than two years ago, a cup of coffee cost 450 bolivars and as Venezuela's hyperinflation continues, a cafe con leche is priced at one million bolivars! That's exactly the money Venezuelans paid for a one-bedroom flat 15 years ago.
The reason for this grim state is the economic devastation in the country that has led to mass migration, political unrest and starvation. The situation comes despite vast oil reserves in the country. Inflation is quite different from hyperinflation and needs to be considered as separate phenomena.
The out of control inflation in the recent years in Venezuela has made getting cash out of the bank also a difficult task. In fact, banks don't have enough cash now. The government says international sanctions have to be blamed for the situation. Going to the market to buy grocery would require you to carry a sackful of bundles.
A recent university study conducted in the country found that about 90 per cent of civilians were living in poverty last year. Those surveyed for the research had lost an average of 25 pounds in body weight.
With the ever-increasing problem, the Venezuela government has largely stopped reporting their economic data, including an internal measure of inflation. Venezuelan president, Nicolas Maduro at a campaign rally in May, blamed hyperinflation on 'criminal mafias. He had also said that opposition activists and officials in Washington are responsible. However, many economists blamed Maduro and his policies for the problem which include refusing international aid.