Panama: Inflation rises month on month in July
August 12, 2016
In July, consumer prices rose 0.10% month-on-month, which contrasted the 0.10% decrease seen in June. According to the National Comptroller’s Office (Contraloría General de la República), July’s print reflected higher prices for 7 of the 12 categories included in the survey. The food and non-alcoholic beverages component tallied the biggest increase while transportation was the component that dropped the most.
Inflation remained steady in July at the 0.1% print observed in June, which is the lowest reading since November 2015. Inflation has hovered at historically low levels owing to still-low oil prices and a strong USD. 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 in July rested at the 0.3% mark for the fifth consecutive month.