nnual inflation in the country has dropped below one million percent in May for the first time since 2018, Reuters reports. And how did the country magically start to rope in inflation? The central bank restricted the domestic money supply - imagine that.
Consumer prices for the 12 months ending May were up 'only' 815,194%, according to the opposition-run congress. This compared to 1.3 million percent in April. Prices were up 906% in the first five months of the year, according to the data.
The "slowdown" comes as a result of regulations on banks that require them to keep a larger percentage of the bolivar in reserve and because the country's Central Bank is issuing fewer Bolivars than in the past. Ergo, the banking system has less capacity to lend.