Chavez steps up nationalisation threats

Venezeula's president Hugo Chavez has said that he will nationalise food outlets that sell meat above the government-set price, according to reports.

The enigmatic leader has stepped up his socialist agenda since being re-elected to serve a third term and had a law put forward for him to rule by decree.

His government has claimed that private supermarkets have been artificially increasing prices, but the retail sector counters that there are regular food shortages and that the government-imposed price is too low.

The BBC quoted Mr Chavez as saying: "If they insist on violating the interests of the people, the constitution and laws, I will take away the warehouses, the shops, I will take away the supermarkets and I'll nationalise them."

Analysts have viewed this latest remark as a clear escalation of Mr Chavez's socialist rhetoric, with possible targets in the energy sector for nationalisation also.

Venezuela's inflation rose in January to a two-year high and although the government has raised the price of staple foods, critics claim that it isn't enough.