Panama: Inflation falls to six-month low in August
September 15, 2015
In August, consumer prices fell 0.39% over the previous month, which contrasted July’s 0.10% increase. According to the National Comptroller’s Office (Contraloría General de la República), the monthly reading was largely the result of a decrease in prices for transport. Price pressures for basic goods continue to be kept in check by the price control system that President Juan Carlos Varela introduced in July of last year.
Inflation fell from 0.9% in July to 0.4% in August, which marked a six-month low. The price control system and falling oil prices are keeping inflation at historically-low levels. Due to the country’s dollarized economy, authorities lack the freedom to use monetary policy or exchange rate adjustments to influence inflation.
Author: Robert Hill, Economist