Panama: Consumer prices drop once again in September
October 13, 2015
In September, consumer prices dropped 0.48% over the previous month, which came in below August’s 0.39% drop. According to the National Comptroller’s Office (Contraloría General de la República), the monthly reading was largely the result of a decrease in the prices for transportation as well as for clothing and footwear. The price control system that President Juan Carlos Varela introduced in July of last year continues to keep price pressures for basic goods in check.
Consumer prices in September dropped 0.4% over the same month last year, which contrasted the 0.4% increase observed in August. September’s result marked the lowest reading in seven months. The price control system and falling oil prices are keeping inflation at historically-low levels. Due to the country’s dollarized economy, authorities lack the freedom to use monetary policy or exchange rate adjustments to influence inflation.