Panama: Inflation holds steady in September
October 11, 2013
In September, consumer prices rose 0.07% over the previous month, which came in below the 0.27% recorded in August. According to the National Comptroller's Office (Contraloria General de la Republica), the monthly increase reflects how higher prices for furniture and household items more than offset lower prices for transport.
Annual headline inflation was unchanged from the 3.9% registered in August. However, inflation remains above the country's 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 down to 4.0%, which is down 0.1 percentage points from last month's projection.
Author: Carl Kelly, Economist