Panama: Consumer prices inch up in January
Consumer prices rose 0.1% in January on a month-on-month basis, following a 0.2% decline in December. Rising prices for transport, utilities, and alcoholic beverages and tobacco marginally outweighed lower food and non-alcoholic beverage prices to nudge the overall reading higher.
Meanwhile, consumer prices rose 0.4% on an annual basis in January, contrasting the 0.1% drop observed in December. Annual average consumer prices fell 0.3% year-on-year in January, following a decline of 0.4% in the month prior.
Inflationary pressures look set to return this year as economic activity gradually picks up. However, due to relatively low global oil prices and the dollarized nature of the Panamanian economy, inflation is set to remain relatively subdued compared with regional partners.