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Panama Inflation November 2023

Panama: Inflation falls to lowest level since July in November

Inflation inched down to 2.0% in November, which followed October’s 2.1%. November’s result represented the lowest inflation rate since July. The moderation stemmed from softer price growth for transportation, which outweighed greater price pressures recorded for food and non-alcoholic beverages, clothing and footwear, and housing and energy.

Meanwhile, the trend was unchanged, with annual average inflation coming in at October’s 1.5% in November.

Lastly, consumer prices rose 0.05% in November over the previous month, contrasting the 0.18% fall seen in October.

Analysts at the EIU commented on the outlook:

“Road blockades and supply-chain disruptions resulting from anti-mining protests in November lifted inflation to an estimated 3% at end-2023. Inflation will ease towards 2% over the 2024-2028 forecast period, but there is a risk that an (increasingly likely) El Niño-related drought will hit local food supplies, driving up prices.”

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