Panama: Inflation increases in October
November 14, 2016
Panamanian consumer prices increased 0.10% in a month-on-month comparison in October, coming in below September’s 0.19%. According to the National Comptroller’s Office (Contraloría General de la República), October’s print reflected higher prices in 5 of the 12 components of the index, with the transportation and household, water, electricity, and gas components observing the biggest increases.
Inflation increased from 1.2% in September to 1.4% in October. Due to the country’s dollarized economy, the authorities lack the freedom to use monetary policy or exchange rate adjustments to influence inflation. Meanwhile, annual average inflation inched up from 0.4% in September to 0.4% in October, marking the highest reading in over one year.