Venezuelan private telcos hike prices as inflation soars
Venezuela's leading private telcos will significantly increase their mobile telephony and internet prices as inflation in the country soars.
Both Movistar and Digicel are set to raise prices 20-23%, local publication El Mundo reported.
This increase is likely to be unpopular with the country's public authorities, who have cracked down significantly on price hikes by private players in a range of sectors.
The move comes as Venezuela's central bank has announced accelerating inflation rates, blaming the rise on protests which have disrupted the country's economy.
Figures released by the bank show inflation accelerating to 5.7% in both April and May from 4.1% in March.
The IMF is also expecting to see a rise in Venezuelan inflation this year, predicting consumer prices to increase 50.7% in 2014 compared to 40.7% in 2013.
The country's telecoms sector saw revenues rise 34% in bolívar terms during Q1, according to statistics from regulator Conatel.
This rise is not enough to keep up with Venezuela's rampant inflation, however, while the introduction of new parallel exchange rates may also eat into the value of these revenues in bolívar terms.
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