Panama: Inflation inches down in February
March 12, 2013
In February, consumer prices rose 0.55% over the previous month, which came in slightly below the 0.60% increase recorded in January. According to the National Comptroller's Office (Contraloria General de la Republica), the monthly increase mainly reflected higher prices for the education and transport sectors.
Annual headline inflation inched down from 4.7% in January to 4.6% in February. Despite having moderated in recent months, the inflation rate remains well 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 panellists expect inflation to reach 4.4% this year, which is unchanged from last month's forecast. For 2014, the panel sees inflation inching down to 4.3%.