Venezuela Price Controls Cause Panic Buying

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30 Novemeber 2011

Chavez Price Caps Spark Panic Buying of Coffee, Toilet Paper
Shoppers stock up on toilet paper
and at a supermarket in Caracas.
Price controls announced by the Venezuelan government came into effect on 22 November, causing panic buying of regulated goods and leading to shortages of staples like coffee and toilet paper. The recent price cap placed on certain goods has led many to stock their homes and resell the products at a profit in the black market. Authorities announced they will visit stores to ensure availability of regulated products.
Source: http://www.bloomberg.com/news/2011-11-25/chavez-price-caps-spark-panic-buying-of-coffee-toilet-paper.html
(Reliability: 8.5)

Comment: Price control regulations took effect on 22 November in an attempt to slow Venezuela’s 26.9% inflation rate registered in October 2011, the highest in the Western Hemisphere. A freeze on 18 personal care items ranging from toothpaste to deodorant is expected to last until mid-January. The measure comes less than a year before presidential elections slated for October 2012.

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