Venezuela Congress begins measuring inflation amid cenbank silence

People queue to deposit their 100 bolivar notes, near Venezuela's Central Bank in Caracas, Venezuela December 16, 2016. REUTERS/Marco Bello

By Corina Pons and Brian Ellsworth

CARACAS (Reuters) – Venezuela’s opposition-led congress has started publishing the country’s inflation rate based on its own data collection, as the government of President Nicolas Maduro remains silent about the crisis-stricken nation’s soaring consumer prices.

The legislature has enlisted economics students to collect price data in five cities and asked former central bank employees to process it using the central bank’s methodology, said legislator Jose Guerra, an economist and former researcher at the bank.

Their measurements show prices rose 741 percent in the 12 months to February, 20.1 percent last month alone and 42.5 percent in the first two months of 2017.

Venezuela’s most recent official inflation figures, released last year, showed prices rising 180.9 percent in 2015.

“We’re not trying to substitute the central bank. We are filling the vacuum left by the central bank as a result of it not publishing the figures,” Guerra said in an interview.

The central bank did not immediately respond to an email seeking comment.

Venezuela’s economy has been in free fall since the 2014 collapse of oil prices, which left the socialist economic system unable to maintain an elaborate system of subsidies and price controls that functioned during the oil boom years.

Maduro says his government is the victim of an “economic war” led by political adversaries with the help of Washington.

The government has kept quiet about fundamental economic indicators including economic growth and balance of payments amid an increasingly dire panorama of swelling supermarket lines and worsening shortages.

The absence of inflation figures has everyone from workers to business owners unable to make basic economic calculations.

“Workers don’t know what their salary is, companies don’t know what their costs are,” Guerra said. “There’s no way to calculate the real interest rate. There’s no way to calculate the real exchange rate.”

He said the project already has drawn the interest of Wall Street banks, which are closely monitoring the country’s economy on concerns it could default on its high-yielding dollar bonds.

Measuring inflation is unusually complicated in Venezuela, because consumer products as well as hard currency fetch vastly different prices depending on whether or not they are distributed to the socialist economy’s subsidy system.

Consumers can sometimes obtain basic goods at low-cost prices by waiting for hours in supermarket lines but increasingly have to buy such goods from smugglers on informal markets for more than 10 times the officially mandated prices.

(Writing by Brian Ellsworth; Editing by Alexandra Ulmer and Bill Trott)

Hungry Somali families face agonizing choice: which child to feed

Internally displaced Somali children eat boiled rice outside their family's makeshift shelter at the Al-cadaala camp in Somalia's capital Mogadishu March 6, 2017. REUTERS/Feisal Omar

By Katharine Houreld and Ben Makori

MOGADISHU/BAIDOA, Somalia (Reuters) – Somali mothers are facing an agonizing choice over how to divide their shrinking food supply among hungry children as a devastating drought kills off livestock and leaves the Horn of Africa nation facing the possibility of famine.

“If there’s a very small amount of food, we give it to those who need it the most – the youngest,” said Fatuma Abdille, who arrived in the capital of Mogadishu two weeks ago with her seven children after the family’s herd of goats perished from hunger.

The drought has shriveled grass and dried up water holes. In Bay, a key agricultural region, the United Nations says the harvest has dropped by more than 40 percent.

Now the United Nations is warning that the country risks a repeat of the 2011 famine that killed around 260,000 people. Aid workers are asking for $825 million to provide aid to 6.2 million Somalis, about half the country’s population.

The appeal comes after U.S. President Donald Trump signed a revised executive order suspending travel to the United States from six mainly Muslim nations, including Somalia. Trump has justified that measure on national security grounds. He has also said he will slash budgets for U.S. aid and diplomacy.

That could reduce the support for the new U.N.-backed government, which is fighting to overcome an Islamist insurgency. Somalia had been plagued by civil war for more than a quarter of a century.

Insecurity prevents aid workers from accessing parts of the country, so in many parts of Somalia, families from rural areas are flooding into cities in search of food.

As water sources evaporate, many families are forced to drink water infected with deadly cholera bacteria. The outbreak has affected nearly 8,000 people has killed more than 180 so far.

Mohamed Ali, 50, came to the central city of Baidoa with his seven children. He said he and his wife were getting weaker as they gave the children their share of food.

“We let the children eat first and then we follow but most of the time there’s nothing left because the food is not enough,” he told Reuters in a makeshift camp where families had stretched material over sticks and wire.

Abdille, the mother in the capital, said she watched her 9-year-old son give his younger siblings his portion of food with mixed feelings of sadness and pride.

“He is making a sacrifice,” she said, gesturing to the solemn boy beside her. “I feel proud.”

(Editing by Julia Glover and Alison Williams)

Charities slam Calais ban that could halt food aid for migrants

An aid worker provides assistance near a group of migrants claiming to be minors who use blankets to protect themselves from the cold as they prepare to spend the night after the dismantlement of the "Jungle" camp in Calais, France, October 27, 2016. REUTERS/Pascal Rossignol

By Matthias Blamont and Sudip Kar-Gupta

PARIS (Reuters) – Charities expressed outrage on Friday as the mayor of French port Calais, which has symbolized Europe’s refugee crisis, signed a ban on gatherings that could stop aid groups distributing meals to migrants and refugees.

A decree published on Thursday said the Calais authority believed that handing out meals at the site of the former “jungle” migrant camp was one reason for a rise in ethnic tensions and conflict between rival groups of migrants.

The decree, a copy of which was obtained by Reuters, said food distribution by charities had led to large numbers of people gathering at the site of the now-closed camp, with fights breaking out and risks posed to the safety of local residents.

It did not expressly ban food distribution, but said it was “necessary to ban all gatherings” at the site and banned people from entering it. The decree said gatherings tended to take place “after the distribution of meals to migrants”.

Migrants have been streaming into Calais for much of the last decade, hoping to cross the short stretch of sea to Britain by leaping onto trucks and trains, or even walking through the railway tunnel under the English Channel.

Calais Mayor Natacha Bouchart, a member of conservative party The Republicans who signed the decree, defended her decision on the grounds of public safety and the damage to the local Calais economy caused by the refugee problem.

In a statement, Bouchart said it was also up to the national government to deal with the problem, and that she had always sought to act with “humanity” towards the refugees.

But human rights groups criticized the move, with some saying they would still hand out food to migrants and refugees.

“You’re talking about young people and children. You just can’t deprive them of food,” said Gael Manzi, who works for local aid association Utopia 56.

Manzi said Utopia 56 would continue to distribute food, but at a new site elsewhere in Calais.

Last month, non-government associations said hundreds of migrant children had been returning to Calais, despite the dismantling of the “jungle” camp late last year.

The influx of migrants fleeing war and poverty in the Middle East and Africa is a key issue in France’s upcoming presidential election, with many voters concerned about competition for scarce jobs, security, and the risk of further terror attacks.

Police forces are still deployed permanently in the area where the “jungle” camp stood.

(Reporting by Matthias Blamont and Sudip Kar-Gupta; Editing by Andrew Callus and Catherine Evans)

Brazil races against time to save drought-hit city, dying crops

cracked ground in Brazil

By Anthony Boadle

CAMPINA GRANDE, Brazil (Reuters) – The shrunken carcasses of cows lie in scorched fields outside the city of Campina Grande in northeast Brazil, and hungry goats search for food on the cracked-earth floor of the Boqueirao reservoir that serves the desperate town.

After five years of drought, farmer Edivaldo Brito says he cannot remember when the Boqueirão reservoir was last full. But he has never seen it this empty.

“We’ve lost everything: bananas, beans, potatoes,” Brito said. “We have to walk 3 kilometers just to wash clothes.”

Brazil’s arid northeast is weathering its worst drought on record and Campina Grande, which has 400,000 residents that depend on the reservoir, is running out of water.

After two years of rationing, residents complain that water from the reservoir is dirty, smelly and undrinkable. Those who can afford to do so buy bottled water to cook, wash their teeth with, and even to give their pets.

The reservoir is down to 4 percent of capacity and rainfall is expected to be sparse this year.

“If it does not fill up, the city’s water system will collapse by mid-year,” says Janiro Costa Rêgo, an expert on water resources and hydraulics professor at Campina Grande’s federal university. “It would be a holocaust. You would have to evacuate the city.”

Brazil’s government says help is on the way.

REROUTING THE RIVER

After decades of promises and years of delays, the government says the rerouting of Brazil’s longest river, the São Francisco, will soon relieve Campina Grande and desperate farmers in four parched northeastern states.

Water will be pumped over hills and through 400 kilometers of canals into dry river basins in Ceará, Rio Grande do Norte, Pernambuco, and Paraíba, the small state of which Campina Grande is the second-biggest city.

Begun in 2005 by leftist president Luiz Inacio Lula da Silva, the project has been delayed by political squabbles, corruption and cost-overruns of billions of dollars.

Brazil’s ongoing recession, which economists calculate has shrunk the economy of the impoverished northeast by over four percent during each of the past two years, made things even worse.

Now, President Michel Temer is speeding up completion of the project, perhaps his best opportunity to boost support for his unpopular government in a region long-dominated by native-son Lula and his leftist Workers Party.

In early March, Temer plans to open a canal that will feed Campina Grande’s reservoir at the town of Monteiro. The water will still take weeks to flow down the dry bed of the Paraíba river to Boqueirão.

With the quality of water in Campina Grande dropping by the day, it is a race against time.

Professor Costa Rêgo says the reservoir water will become untreatable by March and could harm residents who cannot afford bottled water.

Helder Barbalho, Temer’s minister in charge of the project, says the government is confident the water will arrive on schedule.

“We have to deliver the water by April at all costs,” he said.

CLIMATE CHANGE

Climate change has worsened the droughts in Brazil’s northeast over the last 30 years, according to Eduardo Martins, head of Funceme, Ceará state’s meteorological agency.

Rainfall has decreased and temperatures have risen, increasing demand for agricultural irrigation just as water supplies fell and evaporation accelerated.

Costa Rêgo blames lack of planning by Brazil’s governments for persistent and repeated water crises, shocking for a country that boasts the biggest fresh water reserves on the planet.

The reservoir supplying São Paulo, Brazil’s largest city and a metropolitan region of 20 million people, nearly dried up in 2015. The capital, Brasilia, resorted to rationing this year.

In Fortaleza, capital of Ceará and the northeast’s second largest city, the vital Castanhão reservoir is down to 5 percent of its capacity.

While that city will also get water from the São Francisco project, it will not arrive until at least year-end because contractor Mendes Junior abandoned work after being implicated in a major corruption scandal.

“Water from the São Francisco river is vital,” Ceará Governor Camilo Santana told Reuters. He said the reservoir can supply Ceará only until August.

After that, the state must use emergency wells and a mandatory 20 percent reduction in consumption to keep Fortaleza taps running until water arrives.

RATIONING

Ceará has had to cut back on irrigation, hurting flower and melon exporters, cattle ranchers and dairy farmers. They stand to flourish when the transfer comes through, but quenching the thirst of the cities will take priority.

In Campina Grande, a textile center, companies including industry leaders Coteminas and Alpargatas have curtailed expansion plans and drastically cut back consumption by recycling the water they use.

There, too, new water will first go towards solving the crisis in Campina Grande and surrounding towns. Only then will officials think about agriculture.

“First we have to satisfy the thirst of urban consumers. Only then can we think of producing wealth,” said Joao Fernandes da Silva, the top water management official in Paraíba.

Rationing has particularly hurt poorer urban families. Many have no running water or water tanks and instead store water in plastic bottles.

For those who have waited decades for the São Francisco transfer, they will believe it only when they see the water flow.

Brito said he and his neighbors survive on the social programs that were the hallmark of Lula and his Workers Party administration. Though tainted by corruption allegations, Lula remains Brazil’s most popular politician ahead of presidential elections next year.

“Without the Bolsa Familia program, we would be dying of hunger,” said Brito, who believes shortages could persist even after the river transfer. “It’s political season again, so they promise us water, just for our votes.”

(Additional reporting by Ueslei Marcelino and Sergio Queiroz; Editing by Paulo Prada, Daniel Flynn and Bernadette Baum)

Spanish lettuce shortage likely to continue into March, say farmers

iceberg lettuce farm

By Emma Pinedo and Francisco Bonilla

LOS ALCAZARES, Spain (Reuters) – A shortage of iceberg lettuce is likely to continue into March, Spanish farmers say, because freak weather conditions in the south of the country early in the agricultural year prevented the planting of seedlings to replace ruined crops.

The southern region of Murcia, where most Spanish lettuce grown for export is cultivated, suffered the worst floods in two decades followed by its first snow storm in over 30 years in December and January.

“This has been extraordinary, it’s not normal to have so many problems at once,” said Jose Antonio Canovas, a farmer and salesman in Murcia for Kernel Export, which grows, packages and delivers a range of vegetables from cauliflower to broccoli.

The ruined harvest and subsequent shortage of produce has led some British supermarkets like Tesco <TSCO.L> and Sainsbury <SBRY.L> to ration iceberg lettuces to three per visit. The limited supply follows a shortage of courgettes in Britain and supplies of broccoli and aubergines have also been affected.

Vegetable production in the European Union has fallen to 60 percent of normal levels in recent weeks due to bad weather affecting producers across the Mediterranean, from Greece to Spain, Spanish exporters say. Spain accounts for around half of EU vegetable exports.

Not only did floods and snow ruin crops, leaving lettuces ready for harvest withered and battered in the fields, but the bad weather prevented the planting of polytunnel-grown seedlings which meant more delays to the next harvest of Spain’s biggest fruit and vegetable export after tomatoes.

“We have notified our customers that there may be production delays in March because the planting of seedlings has been delayed and in the rush to supply the market some crops were picked ahead of time,” said Fernando Gomez, general manager of The Murcian Federation of Producers and Exporters of Fruit and Vegetables (Proexport).

The production of lettuces, one of the most badly affected crops, has fallen by up to a third in the peak winter months of production when Spain harvests over 100,000 tonnes of the 700,000 tonnes it exports annually.

Production is likely to return to normal by the end of March or the beginning of April, Proexport’s Gomez said.

Many farmers in the area do not insure their crops. In a sector with very slim profit margins of between 1.5 and 4 percent, profit relies on big volumes. Higher prices have not made up for the losses farmers have suffered.

Alongside the hit from ruined crops, the hiring of specialized labor to work the flooded and frozen fields has also eaten into profit margins at farms.

(Writing by Sonya Dowsett; Editing by Angus Berwick and Adrian Croft)

U.N. seeks $2.1 billion to avert famine in Yemen

girls stand at the entrace of tent in yemen

By Stephanie Nebehay

GENEVA (Reuters) – The United Nations appealed on Wednesday for $2.1 billion to provide food and other life-saving assistance to 12 million people in Yemen who face the threat of famine after two years of war.

“The situation in Yemen is catastrophic and rapidly deteriorating,” Jamie McGoldrick, U.N. humanitarian coordinator in Yemen, said in the appeal document.

“Nearly 3.3 million people – including 2.1 million children – are acutely malnourished.”

Yemen has been divided by nearly two years of civil war that pits the Iran-allied Houthi group against a Sunni Arab coalition led by Saudi Arabia. At least 10,000 people have been killed in the fighting, which has unleashed a humanitarian crisis in the desperately poor Arabian Peninsula country.

In all, nearly 19 million Yemenis – more than two-thirds of the population – need assistance and protection, the U.N. said.

“Ongoing air strikes and fighting continue to inflict heavy casualties, damage public and private infrastructure, and impede delivery of humanitarian assistance,” it said.

“The Yemeni economy is being wilfully destroyed,” it added, saying that ports, roads, bridges, factories and markets have been hit.

An estimated 63,000 Yemeni children died last year of preventable causes often linked to malnutrition, the U.N. Children’s Fund (UNICEF) said last week.

“In Yemen, if bombs don’t kill you, a slow and painful death by starvation is now an increasing threat,” Jan Egeland, secretary-general of the Norwegian Refugee Council, said in a separate statement as the U.N. plan was launched.

A military coalition led by Saudi Arabia entered Yemen’s civil war in March 2015 to try to reinstate President Abd-Rabbu Mansour Hadi after he was ousted from the capital Sanaa by the tribal Houthis, who are fighting in an alliance with troops loyal to former President Ali Abdullah Saleh.

The United States has sent the Navy destroyer USS Cole to patrol off Yemen’s coast to protect waterways from Houthi militia aligned with Iran, U.S. officials last week, amid rising tension between Washington and Tehran.

Oxfam accused Britain and other powers backing the Saudi-led coalition of “political complicity” in the Yemen conflict.

“The UK Government’s calculated complicity risks accelerating Yemen toward a famine, putting millions of lives at risk and making a mockery of their global obligations to those in peril,” Mark Goldring, chief executive of Oxfam GB, said in a statement.

(Reporting by Stephanie Nebehay; Editing by Tom Miles and Tom Heneghan)

WFP, short of funds, halves food rations to displaced Iraqis

Displaced Iraqis flee their homes while battles go on with Islamic State

By Ayat Basma

ERBIL, Iraq (Reuters) – The World Food Programme said on Friday it had halved the food rations distributed to 1.4 million Iraqis displaced in the war against Islamic State because of delays in payments of funds from donor states.

“This year somehow we are receiving commitments from donors a little bit late, we are talking with donors but we don’t have enough money as of yet,” said Inger Marie Vennize, spokeswoman for the U.N. agency.

“We have had to reduce (the rations) as of this month.”

The WFP is talking to the United States – its biggest donor – Germany, Japan and others to secure funds to restore full rations, she added.

“The 50 percent cuts in monthly rations affect over 1.4 million people across Iraq,” Vennize said.

The impact is already being felt in camps east of Mosul, the northern city controlled in part by Islamic State. About 160,000 people have been displaced since the military campaign to recapture Mosul from the Islamists was launched in October.

“They gave us a good amount of food in the beginning, but now they have reduced it,” said Omar Shukri Mahmoud at the Hassan Sham camp.

“They are giving an entire family the food supply of one person … And there is no work at all … we want to go back home,” he added.

“We are a big family and this ration is not going to be enough,” said 39-year-old Safa Shaker, who has a family of 11.

“We escaped from Daesh (Islamic State) in order to have a chance to live and now we came here and they have cut the aid. How are we supposed to live?” she said as she cooked for the family.

About 3 million people have been displaced from their homes in Iraq since 2014, when Islamic State took over large areas of the country and of neighboring Syria.

(With assistance by Girish Gupta; Writing by Saif Hameed; Editing by Andrew Roche)

Unpaid state salaries deepen economic pain in Yemen’s war

public workers crowd post office to receive salaries

By Noah Browning

DUBAI (Reuters) – Already suffering grievously under nearly two years of civil war, many thousands of Yemeni state workers now face destitution as their salaries have gone largely unpaid for months.

The immediate reason is a decision by the internationally-recognized government to shift Yemen’s central bank out of Sanaa, the capital city controlled by the armed Houthi movement with which it is at war.

Underlying the bank’s move to Aden, the southern port where the government is based, is a struggle for legitimacy between the two sides. The result is to deepen economic hardship when four-fifths of Yemen’s 28 million people already need some form of humanitarian aid, according to U.N. estimates.

“I sold everything I have to cover the rent and the price of the children’s school and food. I have nothing left to sell,” said Ashraf Abdullah, 38, a government employee in Sanaa.

“Salaries have become a playing card in the war, and no one cares about the fate of the people who die of starvation every day,” the father of two told Reuters.

At least 10,000 people have been killed in the fighting while millions face poverty and starvation. Saudi Arabia intervened in March 2015 to back President Abd Rabbu Mansour Hadi after the Houthis, who are aligned to Riyadh’s regional rival Iran, pushed him out of Sanaa.

The administration in Aden says it had to move the bank in August because the Houthis had looted the funds to pay soldiers and fighters waging war against it – a charge the group denies.

It has promised to pay salaries to public servants even in the main population centers which are mostly in Houthi hands. Prime Minister Ahmed bin Dagher said it had sent off a payment on Wednesday but banking sources say this covers only December, and four months of wages remain unpaid for most employees.

The crisis has affected tens of thousands of employees in Sanaa alone, a source in the Civil Services ministry said.

It is unclear how many of the 250,000 employees registered nationwide before the Houthis seized Sanaa in 2014 have received incomplete salaries – as a large proportion in government-held areas have been paid.

Nor is the number of public workers appointed by the Houthis after their rise to power, estimated in the tens of thousands.

The government denies it is trying to undermine support for the Houthis – whom it calls “coup militia” – by impoverishing state workers living under their rule. Instead, it accuses the Houthis of obstructing the payments and insists they be the ones to disburse the funds.

“The coup militia … (is) refusing to hand over lists of employees’ salaries in institutions and government agencies in the capital Sanaa and the provinces they control,” government news agency SABA quoted an official as saying.

(For a graphic on battle for control in Yemen, click http://tmsnrt.rs/2jV4tDI)

NATIONAL AUTHORITY

While the Houthis still control the main towns and cities in the north and west, they have steadily lost ground to government troops backed up by thousands of Gulf Arab air strikes.

Still, the government struggles to extend its influence over the land it nominally rules. It also faces a southern secessionist movement, restive tribes and Islamic militants, while many services such as electricity and water are scarce.

In the struggle for legitimacy, both sides appear keen to deprive the other of any mantle of truly national authority which paying salaries across the battle lines would confer.

Current and retired soldiers demanding their dues have even regularly demonstrated in Aden’s streets in recent days, suggesting the non-payments may not be strictly political.

Diplomats and analysts worry about the consequences of transferring the bank away from its veteran staff in Sanaa.

“The new central bank in Aden remains unequipped – on the basis of manpower alone – to handle the duties that its predecessor institution did,” said Adam Baron, a Yemen expert at the European Council on Foreign Relations.

The new bank denies this and says it is committed to working impartially and overcoming wartime confusion to do its job.

Meanwhile, many Yemenis can no longer wait for a solution.

“This is our fifth month without a salary, and we live by borrowing from the corner store, but now they are refusing to give us anything are calling in their debt, said Abdullah Ahmed, 50, a soldier in the interior ministry. “The landlord is demanding rent for the apartment … we’re dying, not living. Every door is being closed in our faces.”

(Editing by Tom Finn and David Stamp)

Venezuela’s opposition revives push to end Maduro’s rule

Protesters in Venezuela hold sign that reads "Let us vote"

By Diego Oré and Anggy Polanco

CARACAS/SAN CRISTOBAL, Venezuela (Reuters) – Offering prized bags of flour to police and hurling empty medicine boxes on the floor, Venezuelan opposition protesters launched a new push on Monday to force President Nicolas Maduro from power and end 18 years of socialist rule.

Turnout for the opposition’s first rallies of 2017 was not massive, reflecting disillusionment over last year’s failure to bring about a referendum to recall the 54-year-old leader and successor to Hugo Chavez.

But those who did march in a string of rallies around the country turned creative in their complaints about the South American OPEC nation’s unprecedented economic crisis.

In the politically volatile western state of Tachira, long a hotbed of anti-Maduro sentiment, some demonstrators proffered flour – an increasingly scarce and expensive commodity during the nation’s three-year recession – to police, witnesses said.

In Caracas, where several thousand opposition supporters marched, some threw empty medicine cartons on the floor to symbolize shortages afflicting the health sector.

Security forces fired teargas in Tachira to stop protesters from reaching an office of the National Election Council, while in Caracas they used tear gas against people blocking a highway.

With many of Venezuela’s 30 million people skipping meals, unable to pay soaring prices for basic goods and facing long lines for scarce subsidized products, Maduro, who won a 2013 election to succeed Chavez, has become deeply unpopular.

Polls showed a majority of Venezuelans wanted a referendum last year which could have brought his rule to an early end and sparked a presidential vote. But compliant courts and election authorities thwarted the move, alleging fraud in signature collections.

“This government is scared of votes, and the election council is the instrument they use to avoid them,” said housewife Zoraida Castro, 46, during a march to the election council’s office in southern Ciudad Bolivar city.

The opposition Democratic Unity coalition is demanding dates for regional elections that are supposed to happen this year, and also urging Maduro to hold a new presidential ballot.

“It’s a day of struggle in Venezuela,” said coalition secretary general Jesus Torrealba, in Barquisimeto town to show solidarity with a Catholic archbishop whose residence was recently attacked after he criticized the government.

Maduro’s six-year term is due to end in early 2019.

Red-shirted government supporters, who accuse the opposition of seeking a coup with U.S. connivance, were also marching on Monday, a politically significant day for Venezuelans: the anniversary of the 1958 fall of dictator Marcos Perez Jimenez.

They gathered at the National Pantheon building to honor leftist guerrilla Fabricio Ojeda, who was murdered in 1966.

(Additional reporting by German Dam in Ciudad Bolivar, Anggy Polanco in San Cristobal; Writing by Andrew Cawthorne; Editing by Alexandra Ulmer and Paul Simao)

‘Santa Claus isn’t coming,’ recession-hit Venezuelans tell kids

A child walks in a toy store in Caracas, Venezuela, December 1, 2016.

By Andreina Aponte

CARACAS (Reuters) – As a harrowing economic crisis makes food scarce for millions of Venezuelans, many families cannot buy their children Christmas presents, decorate their home, or even host a holiday dinner.

The oil-rich country is suffering the third year of a recession that has sparked product shortages and galloping inflation. With a recent currency depreciation pumping up prices even higher, some parents are simply canceling Christmas.

“Last year I bought everything for my daughter,” said Dileida Palacios, a 40-year-old hairdresser dressed in black to mourn her son killed in crime-rife Venezuela a few weeks ago.

“This year I had to tell her everything is tough and Santa Claus isn’t coming.”

Like Palacios, about 38.5 percent of Venezuelans think this Christmas will be worse than last year’s, and 35 percent think it will be the worst ever, according to a poll by consultancy Ecoanalitica and Catholic University Andres Bello.

Several days of unrest over a national cash shortage have added to the grim national mood.

Once merrily decorated during the holidays, Caracas looks shabby. Many stores are empty, closed or selling cruelly expensive toys, Christmas trees, and holiday treats like “hallacas,” a cornmeal dish wrapped in plantain leaves.

Eight-year old Helen Ramirez, who lives in Caracas’ sprawling Petare slum, asked Santa for food for her family and pink roller skates from the Disney show “I’m Luna.”

But those skates are far out of reach for Ramirez’s family at about 400,000 bolivars, roughly $100 at the black market rate and about 14 times the monthly minimum wage.

“This year we didn’t decorate the house or anything,” said Ramirez’s grandmother, Nelys Benavides, during a charity-organized present giveaway in Petare. “We have nothing.”

President Nicolas Maduro’s leftist government accuses businessmen and rival politicians of seeking to stoke anger and ruin Christmas.

State media has feted the arrival of 200 containers of toys and food in Venezuela’s otherwise largely deserted ports, and Maduro lit a cross on Caracas’ Avila mountain in November to usher in early holidays.

His government confiscated 3.8 million toys from importer Kreisel, accusing the company of hoarding and price gouging.

Two Kreisel executives have been jailed, and Socialist Party committees have been distributing the toys to children.

“That’s what you call a reinforcement for Father Christmas, right?” the president laughed, stroking his mustache during a recent speech on state TV. “Saint Nicolas without a beard; Saint Nicolas with a mustache!”

(Additional reporting by Eyanir Chinea; Editing by Alexandra Ulmer and Lisa Von Ahn)