Panama: Inflation accelerates in November
December 13, 2011
In November, consumer prices added 0.88% over the previous month, quadrupling the 0.22% increase tallied in October. According to the National Comptroller's Office (Contraloria General de la Republica), the monthly rise mainly reflected price increases for food and transport. Annual headline inflation quickened from 6.1% in October to 6.8% in November, reaching its highest level in almost three years. Currently, the inflation rate remains well above the country's historically low levels. Panama registered an average inflation rate of 1.3% during the 15 years prior to the price surge, which commenced in May 2007 and peaked at 10.0% in September 2008. In the country's dollarized economy, authorities lack the freedom to use monetary policy or exchange rate adjustments to reduce inflation.