Venezuelan economist sounds alarm as inflation tops 46,305 percent

Maduro's opposition reports economic crisis is worsening

By Andrea Torres - Digital Reporter/Producer

2014 File Photo by Joe Raedle/Getty Images

CARACAS, Venezuela - Venezuelan economist Angel Alvarado fervently opposes his country's socialist economic model. And since Maduro's administration stopped releasing economic indicators, he decided to publish the data himself. 

Alvarado is an elected official representing the city of Penare in the Congress that Venezuelan President Nicolas Maduro demeaned with his new powerful constitutional assembly.

"It has been nine months of this tragedy and the government doesn't even recognize the problem," Alvarado wrote. 

Alvarado's recent tweet announced Venezuela's annual inflation hit 46,305 percent in June. He also reported food prices rose 183 percent and hyperinflation accelerated to 128.40 percent in June.

Courtesy of Angel Alvarado

According to Alvarado the inflation that a Venezuelan experiences in one day is higher than what residents experience in China, Canada, the United Kingdom and the United States in one year.  

Alvarado also said Venezuela's daily inflation of 2.8 percent is catastrophic in contrast with the annual inflation of countries like Japan with 1 percent, Italy with 1.2 percent, South Korea with 1.7 percent, Germany with 1.8 percent and France with 1.9 percent.

"It's by far the worst hyperinflation suffered by a Latin American country," Alvarado told Reuters. 

President of Venezuela Hugo Chavez is greeted by Chinese Vice President Xi Jinping during their meeting in Beijing in 2008. Photo by Minoru-Pool/Getty Images

Alvarado published the statistical analysis on his website. Maduro, whose recent re-election was deemed as illegitimate by U.S. officials, continues to have the support of the Chinese and the Russians with alliances set up before his time.

China is taking advantage of cash-strapped Venezuela to sign one-sided financial agreements, according to the Center for Strategic & International Studies. The researchers estimate China owns $23 billion worth of Venezuela's foreign debt and is the oil-rich country's biggest creditor. 

Maduro claims the U.S. is the aggressor and the crisis has nothing to do with mismanagement, but it is part of an "economic war" and an "imperialist" plot.

"Every time the poisonous viper Mike Pence opens his mouth, I feel stronger," Maduro said during a recent televised speech. "We have defeated you."

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