Caracas, Venezuela – November 11, 2025 – Venezuela is grappling with rising inflation and worsening economic instability as President Nicolas Maduro faces increasing pressure from the United States and domestic challenges. After a brief period of economic stabilization post-pandemic, Venezuelans are once again struggling with rapidly escalating prices, currency devaluation, and shortages of essential goods.

Inflation Returns to Venezuelan Streets

For many Venezuelans, the sharp rise in prices is a harsh reminder of the hyperinflation crisis that plagued the country for years. Yon Michael Hernandez, a 25-year-old motorcycle taxi driver in the Petare slum east of Caracas, explained:

“Corn flour is 220 bolivars today, it may be 240 tomorrow and 260 the day after. The same package that cost one dollar 15 days ago is worth three now.”

In the past three months, the Venezuelan bolivar has lost roughly 70% of its value against the US dollar, according to central bank data. The black market, widely used due to strict currency controls, reflects an even steeper decline.

Impact of US Pressure and Sanctions

The renewed inflation is partially linked to growing tensions between the US and Venezuela, including a Pentagon deployment targeting alleged drug trafficking operations. In addition, decades-long US sanctions on Venezuela’s oil sector, the country’s largest source of foreign exchange, have reduced official revenue, forcing the government to sell oil on the black market at discounted rates.

For example, changes to Chevron’s export license have cut Venezuela’s legal oil income in half, exacerbating economic pressures.

Daily Struggles for Venezuelans

For ordinary citizens, the effects are immediate and severe. Marjorie Yanez, a 40-year-old street-food vendor, described the struggle:

“Dollars get more expensive every day, and we must raise our prices constantly just to survive.”

A typical breakfast now costs between $8 and $10, while the official minimum wage remains less than $1 per month. Venezuelans increasingly rely on remittances from family abroad, but these funds are often insufficient as the bolivar depreciates rapidly.

Government Crackdowns and Economic Controls

The Venezuelan government has attempted to control the crisis by detaining economists who publish negative forecasts and cracking down on black-market currency trading. In June, Attorney General Tarek William Saab reported the detention of 58 people for allegedly manipulating exchange rates, but these measures have done little to stabilize the bolivar.

Venezuela’s Turn to Cryptocurrencies

To offset declining foreign income, the government has increasingly embraced cryptocurrencies. Private companies are now allowed to exchange crypto for bolivars, regulated by the National Superintendence of Crypto Assets (Sunacrip).

Venezuelans across all social classes—from bankers to retirees—are using platforms like Binance to secure US dollars, often trading currencies in grocery store checkout lines. However, older citizens and newcomers find the process confusing and risky, limiting the effectiveness of crypto as a solution for the broader population.

Economic Outlook

The International Monetary Fund (IMF) estimates Venezuela’s annual inflation at 270%, up sharply from 180% earlier this year. For 2026, projections suggest inflation could exceed 600%, driven by continued currency depreciation, sanctions, and economic mismanagement.

Despite Maduro’s claims of recovery in recent years, including an 8% GDP growth and historically low inflation rates, the current economic outlook paints a bleak picture for Venezuelans struggling to afford daily necessities and maintain financial stability.