Panama: Inflation eases slightly in December
January 8, 2014
In December, consumer prices rose 0.27% over the previous month, which came in above the 0.07% increase recorded in November. According to the National Comptroller's Office (Contraloria General de la Republica), the monthly increase was mainly driven by higher prices for recreation.
Annual inflation inched down from 3.8% in November to 3.7% in December. However, inflation remains above historically-low levels. Due to the country's dollarized economy, authorities lack the freedom to use monetary policy or exchange rate adjustments to reduce inflation.
FocusEconomics Consensus Forecast panelists expect inflation to reach 4.1% by the end of 2014, which is unchanged from last month's forecast. For 2015, the panel sees inflation at 4.0%.
Author: Carl Kelly, Economist