Yup Venezuela has inflation all right, product of its funky monetary policy that really confuses the hell out of some people. But check out this chart, that shows the Venezuelan inflation rate (precisely, the CPI consumer price index) over the last five-and-a-bit years, but this time compared to the average increases in salaries (the general salary index, comprised of national public and private sectors) for the same periods.
What do we see? Basically, pay increases have kept up with inflation. 2008 was a bad year for the wage packets versus the shop prices, but this year things look more equal again. In fact, if you tot up the scores salaries have outstripped inflation by 1.3% over the extended period.
Ever noticed how the English media will tell you all about Venezuela’s inflation rate but never tell you about the matching increases in salaries? Funny dat, innit?