According to the Venezuelan Finance Observatory (OVF), inflation rose to 26% in May due to monetary expansion. The image shows the Sabana Grande commercial district in Caracas. Photo: Hugo Londoño.
Guacamaya, June 9, 2025. The Venezuelan Finance Observatory (OVF) recorded a sharp increase in prices in May, reporting an alarming monthly inflation rate of 26%. This would amount to 229% on an annualized basis, surpassing April’s monthly inflation rate of 18.4%.
According to the non-governmental organization, the acceleration in inflation aligns with “the rise in the dollar’s price that month, which was recorded at 25%.”
The OVF also states that the devaluation of the bolívar and the increase in prices are explained by “the monetization of the fiscal deficit, as the Central Bank of Venezuela’s (BCV) financing to PDVSA increased by 300%.” Monetary liquidity reportedly expanded by 145% in May, while the official exchange rate rose by 170%.
In its press release, the OVF also warns that inflation is outpacing the exchange rate adjustments—both official and black-market rates—and is “further undermining the competitiveness of Venezuela’s already deteriorated economy, particularly affecting PDVSA’s financial management.”
The Central Bank of Venezuela, the state institution that typically releases official macroeconomic data, has not published inflation figures since November 2024.
The OVF also noted that the categories with the highest price increases were Food (31%), Clothing and Footwear (34.3%), Health (34.9%), and Education (35%).
