Venezuela’s inflation crisis worsened in March 2025, with consumer prices surging 13.1% in a single month, according to the Venezuelan Finance Observatory, an independent monitoring group.
The jump adds to an already alarming annual inflation rate, which has climbed by 19 percentage points to reach a staggering 136%.
Core inflation — excluding volatile food and services prices — fared even worse, soaring to 140%, highlighting the severity of the economic collapse facing the country.
Bolívar devaluation
The bolívar, Venezuela’s national currency, lost 13% of its value against the US dollar in March, intensifying the financial turmoil.
The continued depreciation suggests a strong informal dollarization of the economy, limiting the government’s policy options.
The steep fall in the bolívar also signals increased vulnerability in the current account of the balance of payments, adding pressure to an already fragile economic environment.
As inflation and currency instability escalate, experts warn that Venezuela could face even deeper economic destabilization in the coming months.
Soaring prices hit key sectors
Venezuelan families are feeling the impact of inflation across essential goods and services.
In March 2025, household appliances recorded a sharp 16.7% price increase.
However, services experienced the most dramatic hikes, with gas prices skyrocketing by 56% and sanitation services rising 17%.
Food and non-alcoholic beverage prices also surged, climbing 14% compared to the previous month.
These widespread increases are pushing the cost of living even further out of reach for ordinary Venezuelans.
Why is Venezuela’s inflation out of control?
Economist Aldo Contreras pointed out that Venezuela’s inflation rate climbed to 13.1% in March, following a 12.8% jump in February, resulting in an alarming year-on-year inflation of 136%.
Speaking to Invezz, Contreras emphasized that a key driver of inflation is the Central Bank of Venezuela’s lack of transparency, as it has not released official inflation data since October 2024.
This opacity fosters market skepticism and adds to economic uncertainty, making it harder for businesses and investors to plan ahead.
Another major factor behind the runaway inflation is the explosive growth in monetary liquidity. In 2025, liquidity has increased by 21.72%, suggesting the government is printing money to cover its fiscal deficit, further fueling inflationary pressures.
At the same time, Venezuela is grappling with a severe decline in oil revenues, further straining public finances and heightening fears of a deeper recession.
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