Panama: Inflation picks back up in June after hitting nearly four-year low in May
July 14, 2014
In June, consumer prices rose 0.46% over the previous month, which came in above the 0.13% increase recorded in May. According to the National Comptroller’s Office (Contraloria General de la Republica), the monthly increase was mainly driven by higher prices for food and beverages, as well as for healthcare.
Annual inflation increased from 3.2% in May to 3.4% in June. May’s reading had represented the lowest level in nearly four years. Inflation continues to be above historically-low levels. Due to the country’s dollarized economy, authorities lack the freedom to use monetary policy or exchange rate adjustments to reduce inflation.
Author: Carl Kelly, Economist