Panama: Inflation increases in December to the highest rate since July
Inflation increased to 2.1% in December from November’s 1.5%. December’s reading was the highest inflation rate since July. Looking at the details of the release, housing, food and transport prices rose at a quicker pace in December compared to the previous month, while price pressures for clothing and footwear dropped.
Annual average inflation was unchanged at November’s 2.9% in December.
Lastly, consumer prices rose 0.17% in December over the previous month, largely in line with the 0.13% rise seen in November. December’s figure marked the highest reading since June.
Inflation should increase slightly from current levels this year due to the end of government fuel subsidies on 15 February and dynamic domestic demand growth. Nevertheless, the removal of these subsidies could prove politically difficult; they have already been prolonged twice. Key factors to watch include swings in commodity prices and in public policy.