The IMF predicted inflation in Venezuela more than 1,600%

Consumer price inflation in Venezuela at the end of this year could reach 480%, and by the end of 2017 — has 1640%. This is evidenced by data from the International monetary Fund (IMF), referenced by The Wall Street Journal.

Venezuela suffers from shortages in food and medicines. Last week, the government handed over military control of the food reserves, thereby giving more power to the armed forces, the newspaper reminds.

“The lack of hard currency has led to shortages of intermediate goods and to widespread shortages of essential goods, including food, exacting a tragic loss,” — said in his blog Alejandro Werner, head of Western Hemisphere IMF.

As stated in the IMF survey, political uncertainty and the decline of oil prices have exacerbated the current situation macroeconomic indicators of Venezuela.

Caracas has terminated its relationship with the IMF a decade ago, but economists admit that in this situation the Venezuelans will have to ask for financial assistance from the Fund, writes the WSJ.

The IMF representative Harry rice told the publication that the Fund urged Caracas to restore the relationship, however, the Venezuelan government did not respond.

Even if Venezuela will ask for help from the IMF, given that for several years, the Fund has not had the opportunity to see the finances of the country, the Fund would be difficult to give advice without substantial discussions,” adds rice.