Panama: Inflation slows down again in April
May 13, 2013
In April, consumer prices rose 0.34% over the previous month, which came in below the 0.41% increase recorded in March. According to the National Comptroller's Office (Contraloria General de la Republica), the monthly increase mainly reflected higher prices for food and beverages as well as for health.
Annual headline inflation dropped from 4.1% in March to 3.7% in April, recording the lowest level seen since August 2010. Despite having moderated in recent months, the inflation rate remains above the country's historically low levels. In the country's dollarized economy, authorities lack the freedom to use monetary policy or exchange rate adjustments to reduce inflation.
FocusEconomics Consensus Forecast panellists expect inflation to reach 4.4% by the end of this year, which is unchanged from last month's forecast. For 2014, the panel sees inflation inching down to 4.3%.