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Panama Inflation October 2023

Panama: Inflation falls to lowest level since July in October

Inflation inched down to 2.1% in October, which followed September’s 2.3%. October’s reading marked the lowest inflation rate since July. The figure was primarily driven by slower growth in prices for food and non-alcoholic beverages and for transport. In addition, price pressures for clothing and footwear dropped at a sharper rate.

Annual average inflation rose to 1.5% in October (September: 1.4%).

Finally, consumer prices dropped 0.18% over the previous month in October, swinging from September’s 0.13% increase. October’s result marked the weakest reading since August 2022.

Analysts at the EIU commented on the outlook:

“The current wave of protests, which looks set to continue for a few more weeks, will hit food and other supplies, lifting inflation to 3.4% by year-end—still below the global average of 7.3% for 2023. Assuming that prices and supply normalise over the medium term, inflation will be closer to 2% in 2024–2028, even once subsidies have been withdrawn. However, local food supplies could be hit by an (increasingly likely) El Niño-related drought, which would drive up inflation.”

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