The World - News from Jan. 29, 1989

The price of beer and spirits doubled as the Nicaraguan government prepared tough new austerity measures to combat inflation running at over 21,000% a year. Manufacturers announced a 120% increase in beer prices, a 100% hike for rum and soft drinks and a 75% increase for some brands of cigarettes. The latest increases brought the cost of 24 bottles of beer to $12.50 and a case of lemonade to $7.50, which is more than many workers earn in a month. President Daniel Ortega called a special session of Nicaragua’s National Assembly for Monday to announce an economic plan for 1989.