Inflation in Venezuela
The inflation in Venezuela has caused significant social turmoil. In September, after the toilet paper shortage, which was preceded by food shortages and electricity blackouts, an occupation of the Paper Manufacturing Company took place.
The inflation also led to the handing out of Christmas bonuses in November. While many saw this as political theater meant to sway people’s votes just prior to the December elections, it was thought necessary by some in a country with a 54% inflation rate. It is this climate that necessitates paychecks being distributed prior to prices having time to rise.
Sources: Wall Street Journal, Market Place, National Post, Market Oracle, Trading Economics