Central Bank of Bolivia Announces Accelerated Inflation

Inflation will continue to increase through mid-year, and moreso in February due to increases in the cost of food and other products recorded by the Consumer Price Index.

This is the opinion of Marcelo Zabalaga, interim president of the Banco Central de Bolivia who sustained, during a press conference on the January 2011 Report on Monetary Policy and Financial Stability, that the inflation risk is due to both internal and external factors.

Price speculation, stockjobbing, contraband and the climate are some of the internal factors, while international inflationary pressure due to increased costs of raw materials is the external factor, having an influence of the inflation rate.

Zabalaga stated that according to 2011 projections, as the newspaper EL DIARIO had announced, inflation will continue to rise through June and would later begin to fall again until reaching 6%.

Source : El Diario - Date: 17-Feb-2011 - Read this Article in Spanish.