REUTERS
Venezuela's consumer inflation, already the world's highest, will more than double this year to a level above all estimates from economists surveyed by Bloomberg, the International Monetary Fund said.
Inflation will surge to 720% in 2016 from 275% last year, according to a note published by the IMF's Western Hemisphere Director, Alejandro Werner, Bloomberg reported.
"A lack of hard currency has led to scarcity of intermediate goods and to widespread shortages of essential goods — including food — exacting a tragic toll," Werner said.
"Prices continue to spiral out of control," he said.
Venezuela's central bank published economic statistics January 15 for the first time in a year, confirming that inflation had reached triple digits and closed the third quarter at 141.5% on an annual basis. As of December 2014, the last time data was released, inflation was 68.5%, according to the report.
Venezuela's economy will shrink 8% this year following a 10% contraction last year, according to the IMF. The forecasts are also more pessimistic than economists' median estimates for contractions of 4.1% and 8% this year and last.
Venezuela is one of four key countries along with Brazil, Ecuador and Argentina that will cause Latin America and the Caribbean as a whole to contract in 2016, Bloomberg reported with reference to Werner.