Panama: Inflation stabilizes in October
November 11, 2011
In October, consumer prices added 0.22% over the previous month, which was well below the 0.74% increase observed in September. According to the National Comptroller's Office (Contraloria General de la Republica), the monthly rise mainly reflected price increases in the food, as well as miscellaneous goods categories, which were partially offset by falling prices in the transport category. Annual headline inflation remained unchanged at 6.1% in October. Currently, the inflation rate remains well above historically low levels. Panama registered an average inflation rate of 1.3% during the 15 years prior to the price surge that commenced in May 2007 and peaked at 10.0% in September 2008. In the country's dollarized economy, authorities lack the freedom to use monetary policy or exchange rate adjustments to reduce inflation.