Panama: Inflation picks back up in September
October 14, 2014
In September, consumer prices increased 0.33% over the previous month, which was slightly above the 0.13% increase recorded in August. According to the National Comptroller’s Office (Contraloria General de la Republica), the monthly increase in September was driven mainly by higher prices for healthcare, as well as for food and beverages, despite the price control system for basic food products that President Juan Carlos Varela introduced in July.
Annual inflation increased from 2.1% in August to 2.3% in September. The recently-introduced price control system, however, has kept inflation more in line with 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