Panama Inflation


Inflation broadly unchanged

In October, consumer prices rose 0.14% over the previous month, which doubled the 0.07% rise recorded in September. According to the National Comptroller's Office (Contraloria General de la Republica), the monthly figure mainly reflected higher prices for transport as well as for healthcare. As a result of the monthly figure, annual headline inflation inched down from 5.4% in September to 5.3%, which represents the lowest level since February 2011. Currently, the inflation rate remains well above the country's historically low levels. In the country's dollarized economy, authorities lack the freedom to use monetary policy or exchange rate adjustments to reduce inflation.


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Panama Inflation Chart

Panama Inflation October 2012

Note: Annual and monthly variation of consumer price index in %.
Source: National Comptroller

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