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Economics

Venezuela Tries Dialogue Over Force in Bid to Tame Food Prices

  • Producers and government are discussing costs of basic goods
  • Food prices have surged 172% over past 12 months: Cenda
A butcher checks a transaction at a market in Caracas, Venezuela,
A butcher checks a transaction at a market in Caracas, Venezuela,Source: Bloomberg

Venezuelan President Nicolas Maduro’s pivot to capitalism is being tested as he tries to rein in galloping food inflation without resorting to the strong-arm tactics of the past with price caps and threats of jail time for producers and shop owners.

The government has opened talks with food producers aimed at taming price increases of basic goods. Companies are explaining their pricing policies including production costs to government representatives, according to four people who attended the meetings and requested anonymity since the talks are private. The initial discussions have centered on 27 basic products including milk and meat.