A local makes a price list at a shopping mall in Caracas, Venezuela March 14, 2019. REUTERS/Ivan Alvarado

CARACAS, April 6 (Reuters) – Venezuelan inflation slowed further to 1.4% in March, its lowest level in nearly a decade, central bank figures showed on Wednesday.

The South American country’s price index, which rose 2.9% in February, is showing a slower rise since President Nicolas Maduro’s government began easing foreign exchange controls to allow wider circulation of hard currencies, leading to more stable prices.

The cumulative price increase over the past 12 months reached 284.4% at the end of March, while inflation in the first quarter was 11.4%, according to Reuters calculations based on official data, showing that the Rising prices remain one of the main issues affecting many families. in the countryside.

Venezuela experienced hyperinflation until last year. The minimum wage in the country is the equivalent of $30 per month.

Inflation was pushed higher in March by higher prices for communication and education services, the data showed.

The trend of decelerating inflation could reverse following the imposition this month of a tax on hard currency transactions, a move by Maduro to boost state revenue.

Venezuela’s Finance Observatory this week flagged problems implementing the tax by shops and businesses, adding that the measure creates ground for higher prices.

Reporting by Mayela Armas Editing by Shri Navaratnam

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