Panama: Inflation remained unchanged in November
December 11, 2015
In November, consumer prices were unchanged over the previous month, which came in above October’s 0.11% drop. According to the National Comptroller’s Office (Contraloría General de la República), prices for 5 of the 12 categories included in the survey had fallen. The biggest declines were in transportation, furniture and household items. These drops, however, were offset by gains in five components of the survey.
Inflation recorded a flat reading in November, which came in above the 0.4% drop recorded in October. Inflation has remained at historically-low levels thanks to a price control system and falling oil prices. Nevertheless, inflation is expected to pick up moderately after December when the government is expected to remove the price control system that has been in place since 2014. Due to the country’s dollarized economy, authorities lack the freedom to use monetary policy or exchange rate adjustments to influence inflation.