Venezuela's Dose of Economic Reality Not What It Seems: Chartby
Venezuela President Nicolas Maduro on Wednesday announced a 60-fold hike in gasoline prices, the first increase in almost 20 years. The increase is not the dose of economic reality that it may first appear though. It will now cost about 45 bolivars to fill a tank with 91-octane fuel -- half the price of a standard cup of coffee in Caracas and only about 4 U.S. cents at the black market exchange rate. Moreover, with inflation running at 181 percent last year, the real cost will quickly drop unless further increases are announced.