March 3, 2005
Consumer Price Index increased only 0.2% in February

(BCV Press release) - "Venezuela's inflation only increased by a 0.2% in February, following a 1.9% rise in January and registering the slowest monthly consumer price gain in the last 17 years.

This low inflation rate was due to the small price variation observed both in products that float freely according to supply and demand (from 2.7% to -0.3%) and of the products presently subjected to price controls, which in January were at 1.1% and in February at 0.7%. Consumer prices for food and non-alcoholic beverages fell 1.9%, while prices for clothing and shoes fell 0.1%. Prices for produce fell 6.9% last month, helping to bring down the cost of food.

The annual variation of inflation for the period February 2005 / February 2004 was 16.9%, much lower than the one registered during the same period of the previous year (21.9%). This is the lowest annual variation that has been registered for the last 36 months.

For 2005 we expect inflation will be around 15%, easing from 19.2% observed last year"