Panama: Inflation holds steady again in October
November 14, 2013
In October, consumer prices rose 0.13% over the previous month, which came in slightly above the 0.07% increase recorded in September. According to the National Comptroller's Office (Contraloria General de la Republica), the monthly increase was mainly driven by higher prices for pharmaceuticals and for food and beverages.
Annual headline inflation was unchanged again in October, holding steady at the 3.9% registered in the previous two months. However, inflation continues to be above the historically-low levels. In 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