Panama: Inflation moderates further in June
July 13, 2017
Consumer prices dropped 0.2% in June, coming in below the flat reading observed in May. According to the National Comptroller’s Office (Contraloría General de la República), May’s print reflected higher prices in 7 of the 12 components of the index, which more than offset a drop in two categories of the index. Consumer prices remained unchanged in the other three remaining categories including alcoholic beverages and tobacco.
Inflation moderated from May’s 0.8% to 0.7% in June, the lowest print since August 2016. 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 June at the 1.1% observed in May.