Panama: Inflation recedes in March
April 13, 2017
Consumer prices in Panama dropped 0.1% from the previous month in March, contrasting the 0.3% month-on-month increase recorded in February. According to the National Comptroller’s Office (Contraloría General de la República), March’s print reflected lower prices in 5 of the 12 components of the index, with the transportation component recording the largest decrease. In contrast, healthcare was the category that rose the most.
Inflation moderated from February’s 1.9% to a four-month low of 1.5% in March. 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 up from 0.9% in February to 1.0% in March.