Panama: Inflation edges down to multi-year low in March
April 11, 2014
In March, consumer prices rose 0.40% over the previous month, which came in below the 0.53% increase recorded in February. According to the National Comptroller's Office (Contraloria General de la Republica), the monthly increase was driven by higher prices for healthcare and transport.
Annual inflation edged down from 3.4% in February to 3.3% in March, which marked the lowest level since June 2010. However, inflation remains above historically low levels. Due to the country's dollarized economy, authorities lack the freedom to use monetary policy or exchange rate adjustments to reduce inflation.
FocusEconomics Consensus Forecast panelists expect inflation to reach 4.1% by the end of 2014, which is unchanged from last month's forecast. For 2015, the panel sees inflation at 4.0%.
Author: Carl Kelly, Economist