Panama: Inflation picks up in December 2016
January 13, 2017
Consumer prices in Panama rose 0.10% from the previous month in December, contrasting the 0.10% drop observed in November. According to the National Comptroller’s Office (Contraloría General de la República), December’s print reflected higher prices in 4 of the 12 components of the index, with the transportation component observing the largest increase.
Inflation edged up from November’s 1.3% to 1.5% in December, a one-year high. 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 inched down from 0.8% in November to 0.7% in December.