Panama: Inflation moderates further in July
August 11, 2017
Consumer prices dropped 0.2% in July, matching the print observed in June. According to the National Comptroller’s Office (Contraloría General de la República), July’s print reflected lower prices in 5 of the 12 components of the index, which more than offset higher prices in 5 categories. Transportation, food and non-alcoholic beverages were the categories that dropped the most.
Inflation moderated from June’s 0.7% to 0.4% in July, the lowest print in one year. 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 remained steady in July at the 1.1% observed in June.