Panama: Inflation steady in April
May 13, 2016
In April, consumer prices rose 0.5% month-on-month, which followed March’s 0.3% increase. According to the National Comptroller’s Office (Contraloría General de la República), March’s print reflected price increases for 7 of the 12 categories included in the survey. The transportation component tallied the biggest increase while communications was the component that dropped the most.
Inflation came in at 0.6% in April, matching the reading tallied in March. Inflation has hovered around historically low levels owing to a price control system and falling oil prices. In December, the government extended the price control system until June. Due to the country’s dollarized economy, authorities lack the freedom to use monetary policy or exchange rate adjustments to influence inflation.