Panama: Inflation falls slightly in November
December 12, 2013
In November, consumer prices rose 0.07% over the previous month, which came in slightly below the 0.13% increase recorded in October. According to the National Comptroller's Office (Contraloria General de la Republica), the monthly increase was mainly driven by higher prices for healthcare.
Annual inflation fell slightly from 3.9% in October to 3.8% in November. 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 4.3% by the end of this year, which is down 0.3 percentage points from last month's forecast. For 2014, the panel sees inflation at 4.0%, which is down 0.1 percentage points from last month's projection.
Author: Carl Kelly, Economist