Panama Inflation May 2017


Panama: Inflation moderates further in May

June 12, 2017

Consumer prices in Panama were unchanged in May, matching the print observed in April. According to the National Comptroller’s Office (Contraloría General de la República), May’s print reflected higher prices in 5 of the 12 components of the index, which more than offset a drop in three categories of the index. Consumer prices remained unchanged in the other four remaining categories including alcoholic beverages and tobacco.

Inflation moderated from April’s 1.0% to 0.8% in May, 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. Despite the drop, annual average inflation inched up from April’s 1.0% to 1.1% in May.

Panelists participating in the FocusEconomics Consensus Forecast expect inflation to reach 2.2% by the end of 2017, which is up 0.3 percentage points from last month’s forecast. For 2018, the panel sees inflation ending at 2.5%.

Author: Jean-Philippe Pourcelot, Economist

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Panama Inflation Chart

Panama Inflation May 2017 0

Note: Annual variation of consumer price index in %.
Source: National Comptroller’s Office and FocusEconomics calculations

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