Panama: Consumer prices continue to fall in October
November 15, 2019
Consumer prices dipped 0.1% month-on-month in October, following a flat reading in September. Lower prices were seen nearly across the board: prices fell for food and non-alcoholic beverages; alcoholic beverages and tobacco; health; and restaurants and hotels. This offset a rise in transport costs.
Meanwhile, consumer prices fell 0.7% on an annual basis in October, down from the 0.6% drop registered in September. Annual average consumer prices fell 0.1% year-on-year in September, following a flat reading in August.
Inflationary pressures will likely remain absent in the months ahead, due largely to the dollarized nature of the Panamanian economy and weak oil prices, however they should gradually resurface in 2020 as the economy strengthens.
Author: Lindsey Ice, Economist