CARACAS, Venezuela (AFX) - Inflation in Venezuela could climb as high as 15 percent this year, far above initial estimates by President Hugo Chavez's government, a top lawmaker said Tuesday.
Rodrigo Cabezas, president of the congressional finance commission, told reporters that inflation will likely near last year's level of 14.4 percent.
"It could close between 14 percent and 15 percent," he said at a press briefing.
It was the second time in two months that a top politician in Chavez's administration has raised the government's official inflation estimate.
The government originally said it aimed to keep inflation at or below 10 percent.
But last month, Planning Minister Jorge Giordani said that goal was "not possible any more" and estimated inflation could end in 2006 at 12 percent.
Venezuela's central bank announced Friday that inflation in August stood at 2.2 percent for an accumulated inflation rate of 10.4 percent since January.
Cabezas added that the central bank may take steps to contain inflation, including reducing the value-added tax anywhere from 1.5 percent to 2 percent in coming months and further raising reserve requirements on banks.
Cabezas said there were no plans to reduce government spending -- something critics have cited as fueling the rise in prices.
Chavez expressed concern Sunday about the growing consumer prices during his weekly TV and radio program and called on his ministers to do something about it.
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