Caracas, 09 Ago. AVN.- Director of Venezuela's Central Bank, Jose Felix Rivas, said Thursday that the 1 percent-inflation rate in July, the accrued rate since January this year by 8.6 percent and the annual rate of 19.4 percent show there is a steady trend of price reduction in the country, result of an economic policy which gives priority to social matters.
"It is over 50 percent or 60 percent probable that we will be below the figure estimated in the national budget, which is between 20 percent and 22 percent (of inflation)," said Rivas in local television.
Jose Felix Rivas said that this positive results owe to an economic policy earmarked within the coordination and planning of several state-run institutions in charge of analyzing prices.
Particularly, he referred to a non-Orthodox policy which proved that generating employment and taking control of the food industry, prices may drop to benefit citizens.
Rivas said that contrary to the guidelines of the Orthodox monetarist theory -to drop inflation, it is necessary to restrict the flow of money and reduce social expenditure-, in Venezuela has been implemented a policy to boost employment, raise wages and subsidies to the food industry, education and health, which resulted in a decline of inflation and the improvement of all social indexes.
In addition, the director of Venezuela's Central Bank said the Government's social policy favors the private industry, since it has been increased people's purchasing power and it has been ensured the access to food for the poor.
"The media has showed just one side, the pressure of demand and they justify the whole logic of demand, that's why they do not justify the raise of wages... but it provides a sustained and increasing demand to the productive apparatus. This gives a boost to the economic activity," Rivas said.
Rivas said Venezuela's economy is amid a process of transition and institutional changes, by planning and coordinating this structure with the participation of the State, people and even the private industry.
According to him, Latin America represents the new way to do economic policy in the world, in front of the failed neoliberal model, which causes social crisis in nations as Spain, whose current fiscal policy is devised to favor great capitals to the detriment of the people.