Inconsistent polices cause more inflation in Nicaragua

Measure the government of Nicaragua has applied to stop inflation have had little effect.

Wednesday, July 23, 2008

Independent economists are saying that the measures imposed have the opposite effect to that hoped for, and inflation continues to rise.
Economist Alejandro Arauz says that one of the reasons is that the anti-inflationary measures don't reduce production costs, and these are a major factor in food production.
He said the government is failing to attack the basic problem. The increasing production costs are consuming the gains of producers and keep the prices of basic foods high.

More on this topic

Guatemala businessmen unhappy with anti-inflation measures

July 2008

Guatemala's business sector has expressed disappointment with some of the monetary policy measures that were imposed to deal with inflation.

One of these is the tightening of the money supply, which they say has a negative effect on the country's economic growth.
The Bank of Guatemala has taken excess liquidity out of the economy to discourage spending and to keep prices down.

Inflation in Nicaragua to top 20%

June 2008

Nicaragua could finish the year with an inflation rate of more than 20 percent, according to estimates based on figures provided by the Central Bank of Nicaragua. That's more than double official projections.

The reason for higher prices is the high and rising cost of food and fuel, say independent economists.

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