Just days after the International Monetary Fund issued an eye-catching forecast — inflation of 1,000,000 percent in Venezuela this year — the data on the ground suggests that even that number may turn out to be too low.
The price of a cup of coffee measured in Bloomberg’s Cafe Con Leche Index soared to 2,000,000 bolivars this week from 1,400,000 bolivars the week before. Back in late April, the price was 190,000 bolivars. That three-month increase equates to an annualized rate of 1,227,638 percent. (The trailing 12-month inflation rate, while still out of control, comes in much lower for now: 86,857 percent.)