Panama: Inflation moderates in May
June 10, 2016
In May, consumer prices rose 0.19% month-on-month, which came below April’s 0.50% increase. According to the National Comptroller’s Office (Contraloría General de la República), May's print reflected price increases for 4 of the 12 categories included in the survey. The transportation component tallied the biggest increase while alcoholic beverages and tobacco was the component that dropped the most.
In May, inflation eased from 0.6% in April to 0.3% May’s print marks the lowest reading since December. Inflation has hovered at historically low levels owing to still-low oil prices and a price control system in place until June. Due to the country’s dollarized economy, authorities lack the freedom to use monetary policy or exchange rate adjustments to influence inflation. Meanwhile, annual average inflation remained steady in May at the 0.3% reading tallied in April.