In the midst of soaring inflation (22.5% in 2007-- the highest official rate in Latin America) President Hugo Chavez has threatened again to seize property from businesses if they are caught hoarding products.
Chavez warned that his government would expropriate property from individuals or companies that purportedly sit on goods for months to sell later them at inflated prices. Hugo has made similar threats in the past, but no such takeovers have occurred so far. Many of the country's supermarkets and food distributors are still privately owned.
Leading retailers deny hoarding products. Most experts say that currency controls established in 2003 are primarily responsible for higher prices, because businesses are forced to buy imports using black-market dollars at more than twice the official exchange rate. In addition, heavy government spending bankrolled by soaring oil profits has also pushed up prices.
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