The inflation rate in Venezuela has exploded over the last year as the socialist nation grapples with extreme levels of poverty and food shortages — even worse, a new report suggests that the inflation rate could increase ten-fold in the coming months.
According to The Week, five million Venezuelan Bolivars is equivalent to $1.45 in United States dollars, which is approximately the same amount that a minimum-wage worker earns in an entire month in Venezuela.
A cup of coffee in Venezuela now costs approximately one million Bolivars. Bloomberg reports:
Consider that just two years ago, when we launched the Bloomberg Cafe Con Leche Index, a coffee cost 450 Bolivars ...
...With the latest price increase -- from 800,000 Bolivars just a week earlier -- inflation over the past 12 months in Venezuela climbed to 43,378 percent, according to the index.
Bloomberg notes that if the inflation rate over the last three months is used to project the inflation rate over the next year, it comes out to a staggering 482,153%.
The crisis in Venezuela is so dire that Venezuelans reported losing nearly 25 lbs on average in 2017 because they couldn't afford to purchase food. The New York Post reported in February that the poverty rate in Venezuela is approximately 90%.