Venezuela inflation surges to near 20% in July, central bank says

Venezuela's inflation rate skyrocketed to an alarming 20% in July, according to the central bank, as the country grapples with the aftermath of devastating earthquakes that struck the South American nation at the end of June, killing over 6,000 people. National Assembly chief Jorge Rodriguez announced that authorities would prioritize reconstruction efforts and the recovery of valuable gold reserves estimated to be worth $4 billion held in the Bank of England's underground vaults.

The Bank of England has refused to release the 31 metric tons of Venezuelan gold due to its refusal to recognize the legitimacy of President Nicolas Maduro's government. The bullion has been entangled in a lengthy legal battle in British courts, and despite Maduro's capture by the U.S. in January, the gold has not been released.

The earthquakes disrupted the distribution of goods, contributing to the surge in inflation, which rose to 19.9% in July from 13.8% the previous month. The central bank expects inflation to decline in August, with year-on-year inflation reaching 575.9% based on Reuters calculations.