Venezuela Increases Minimum Wage by 50 Percent Amid Skyrocketing Inflation – Reuters

CARACAS (Reuters) – On Friday, Venezuelan President Nicolas Maduro announced a 50 percent increase in the minimum wage, set to take effect on September 1. This decision comes in the context of severe triple-digit inflation that has drastically diminished the purchasing power in the economically troubled OPEC nation.

With the new hike, the monthly minimum wage will be raised to 22,577 bolivars, which is approximately $35 using one of the official exchange rates, but about $23 at the black market rate. When factoring in meal tickets, the total compensation will reach 65,056 bolivars.

"This marks the third minimum wage increase this year," Maduro stated during a televised announcement.

Critics argue that these frequent salary adjustments are grossly inadequate in addressing the rampant inflation, which official figures indicate reached 181 percent in 2015. The central bank has not released more recent inflation statistics, leading opposition leaders to suggest that this omission is an attempt to obscure troubling economic realities.

The state-led economic framework in Venezuela has been on a downward trajectory since oil prices started to decline in 2014. Opposition figures maintain that meaningful change in the nation’s economic strife is unattainable without a shift in governmental leadership.

Maduro, for his part, contends that he is being targeted in an "economic war" orchestrated by his political opponents.