Panama: Inflation rises in June
July 12, 2013
In June, consumer prices rose 0.34% over the previous month, which came in below the 0.41% increase recorded in May. 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 clothing and footwear.
In June, annual headline inflation rose to 4.1% from 3.7% in May, which had marked the lowest level seen since August 2010. As result of the monthly increase, inflation 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 up 0.1 percentage points from last month's forecast. For 2014, the panel sees inflation inching down to 4.3%.