Panama Inflation


Inflation rises in January

In January, consumer prices rose 0.60% over the previous month, which came in above the 0.35% increase recorded in December. According to the National Comptroller's Office (Contraloria General de la Republica), the monthly increase mainly reflected higher prices for housing, water, electricity and gas.

Annual headline inflation inched up to 4.7% in January from 4.6% in December. Despite having moderated in recent months, 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 January 2013

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

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