Bloomberg News

Venezuela to Begin Presenting Regulated Price Caps to Companies

February 15, 2012

Feb. 15 (Bloomberg) -- Venezuela will begin to present regulated prices to about 385 companies that produce personal care and cleaning products including Colgate-Palmolive Co., Procter & Gamble Co. and Unilever NV today.

The government’s price regulation agency, which froze the price of 19 goods ranging from deodorant to toilet paper in November, said in a statement late yesterday that the companies can retrieve documents detailing the new regulated price and the government calculations for profit margins on the goods beginning today until Feb. 18.

The government will allow the consumer companies to review the list of new prices during five business days to give them the opportunity to suggest changes to the price structure before Feb. 26, according to the statement.

Venezuelan President Hugo Chavez created the price regulation agency last year as he widens price controls to slow inflation that he says is fueled by capitalist speculation. Venezuela’s annual inflation rate was 26 percent in January, the highest of 78 economies tracked by Bloomberg.

On Feb. 9, Chavez said his government is setting the price of a Procter & Gamble deodorant 24 percent lower and a 5-liter bottle of water 46 percent lower as examples.

Other items that are set to be lowered in accordance with the price agency include toothpaste, bleach, shampoo, diapers and soap.

--Editors: Daniel Cancel, Harry Maurer

To contact the reporter on this story: Corina Pons in Caracas at crpons@bloomberg.net

To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net


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