Inflation has spiked in Venezuela, making it difficult for people to afford basic essentials. Image credit: Getty Images
It is sometimes difficult to fathom how inflation impacts ordinary people’s lives. Many of us wouldn't know unless it hits us in the pocket.
I thought the photo above helps us to appreciate the devastating effects of inflation.
In Venezuela’s case, it is already labelled hyperinflation – and for Venezuelans, it is causing untold hardships in their day-to-day lives.
The country once boasted Latin America's richest economy – boosted by the biggest oil reserves on the planet. But under former president Hugo Chávez, who died in 2013, and current President Nicolás Maduro, corruption, mismanagement and high levels of debt have seen the country's economy collapse.
Chávez took advantage of the oil boom in the 2000s to borrow heavily and government spending soared. Then, during Maduro's first term in office, the Venezuelan economy went into freefall. Many blamed him for worsening the country's decline. And of course, plummeting oil prices in 2016 compounded the oil-dependent country's crisis.
According to BBC News, it highlighted a study by the opposition-controlled National Assembly which said that the annual inflation rate reached 1,300,000% in the 12 months to November 2018.
By the end of last year, prices were doubling every 19 days on average. This has left many Venezuelans struggling to afford important household items such as food and toiletries.
I thought the photo above helps us to appreciate the devastating effects of inflation.
In Venezuela’s case, it is already labelled hyperinflation – and for Venezuelans, it is causing untold hardships in their day-to-day lives.
The country once boasted Latin America's richest economy – boosted by the biggest oil reserves on the planet. But under former president Hugo Chávez, who died in 2013, and current President Nicolás Maduro, corruption, mismanagement and high levels of debt have seen the country's economy collapse.
Chávez took advantage of the oil boom in the 2000s to borrow heavily and government spending soared. Then, during Maduro's first term in office, the Venezuelan economy went into freefall. Many blamed him for worsening the country's decline. And of course, plummeting oil prices in 2016 compounded the oil-dependent country's crisis.
According to BBC News, it highlighted a study by the opposition-controlled National Assembly which said that the annual inflation rate reached 1,300,000% in the 12 months to November 2018.
By the end of last year, prices were doubling every 19 days on average. This has left many Venezuelans struggling to afford important household items such as food and toiletries.
Some Venezuelans have turned to charity for food. Image credit: Getty Images
On Thursday, I was at the Ireka Toastmasters meeting, after receiving a call for help. I was needed as a speech evaluator.
Ireka were fortunate because my Fonterra Brands Malaysia Toastmasters meeting was cancelled just a day before. Sigh, these days, club meetings are not what I've come to expect!
No comments:
Post a Comment