Panama: Consumer prices continue to decline in November
December 13, 2019
Consumer prices remained unchanged in November on a month-on-month basis, following a 0.1% decline in October. Higher prices for transport were offset by the falling cost of food products and alcoholic beverages and tobacco.
Meanwhile, consumer prices fell 0.3% on an annual basis in November, decelerating from the 0.7% drop observed in October. Annual average consumer prices fell 0.3% year-on-year in November, following a decline of 0.2% in October.
Inflationary pressures will likely pick up in 2020 from current low levels, as economic activity gradually strengthens. However, due to the dollarized nature of the Panamanian economy and relatively low global oil prices, inflation is set to remain relatively restrained compared with regional partners.
Author: Stephen Vogado, Economist