Panama: Inflation edges up in December
January 12, 2016
In December, consumer prices fell 0.1%, which came in below November’s flat reading. According to the National Comptroller’s Office (Contraloría General de la República), prices for of the 12 categories included in the survey had fallen. The biggest declines were seen in the transportation and the clothing and footwear components. These drops, however, were offset by gains in five components of the survey.
Inflation inched up the flat reading recorded in November to 0.2% in December. Inflation has reached historically-low levels thanks to a price control system and falling oil prices. In December, the government extended the price control system for an additional six months. Due to the country’s dollarized economy, authorities lack the freedom to use monetary policy or exchange rate adjustments to influence inflation.