Venezuela’s Inflation Slows to 10.6% in April, but Annual Rate Still Tops 600%
CARACAS, May 4 (Reuters) — Venezuela’s central bank said Monday that the country’s monthly inflation rate eased to 10.6% in April, down from 13.1% in March, offering a rare glimmer of hope for an economy that has been battered by hyperinflation and political turmoil for years.
According to the bank’s website, cumulative inflation for the first four months of 2026 has already reached 90%. Reuters calculations based on central bank data show the annualized inflation rate stands at a staggering 611.86%, a figure that underscores how far the country remains from price stability.
Luis Pérez, the bank’s acting president, struck an optimistic tone in a state television interview, declaring, “Our economy is healthy; it’s doing well.” He predicted that inflation could fall to single digits in May.
Pérez also pushed back against skepticism about the accuracy of the government’s data. “We don’t cook the books,” he said, insisting that the central bank does not manipulate figures to paint a rosier picture.
In a separate development, Pérez confirmed that Venezuela has appointed Calixto Ortega, the current Vice President for Economic Affairs, as its representative to the International Monetary Fund, following the resumption of relations with the global lender last month. The move signals a tentative step toward re-engaging with international financial institutions after years of isolation.
Background and Analysis
While the monthly decline in inflation is notable, analysts warn that the numbers are still far from indicating a sustained recovery. Venezuela’s economy has been in freefall since 2014, with GDP shrinking by more than 70% and millions of citizens fleeing the country. The government’s recent policy shifts, including limited dollarization and looser capital controls, have helped slow price growth, but the underlying structural problems—such as a collapsed oil industry, chronic fiscal deficits, and a shattered currency—remain unresolved.
The appointment of Ortega to the IMF could open the door to technical assistance and potential future financing, but any meaningful engagement is likely to require painful reforms, including subsidy cuts and currency unification, which the government has so far resisted.
Voices from the Ground
María Elena Rojas, a 52-year-old schoolteacher in Caracas, said the official figures don’t match her daily reality. “They say inflation is down, but I still spend half my salary just to buy rice and cooking oil. Maybe the numbers are better for the rich, but not for us.”
Carlos Márquez, a 34-year-old mechanic in Maracaibo, was more blunt. “Single-digit inflation in May? That’s a joke. Pérez should try living on what we earn. The government has been lying for years. They’re not cooking the books—they’re burning them.”
On the other end of the spectrum, economist and former government advisor Ana Lucía Torres offered a measured take. “The slowdown is real, but fragile. It’s driven by tighter monetary policy and a slight increase in dollar inflows. But without a credible stabilization plan, we could see inflation spike again. The IMF appointment is a positive signal, but it’s just the first step on a very long road.”
(Reporting by Reuters staff; Editing by Tom Hogue and Christian Schmollinger)