Panama: Consumer prices flat in July
September 13, 2016
In August, consumer prices were flat, down from July’s 0.10% print. According to the National Comptroller’s Office (Contraloría General de la República), August’s print largely reflected lower prices for transport cancelling out small price increases for food and for recreation and culture.
Inflation increased to 0.5% in August, up from the 0.1% print observed in July. Inflation has hovered at historically low levels owing to still low oil prices and a strong USD. Due to the country’s dollarized economy, the authorities lack the freedom to use monetary policy or exchange rate adjustments to influence inflation. Meanwhile, annual average inflation in August rested at the 0.3% mark for the sixth consecutive month.