Despite a roaring economy and recent minimum wage increases, Panama’s consumer prices are dropping according to the official estimates. Factors may include lower oil prices, responsible self-restraint in major governmental construction projects, and a change in the way the index is calculated.
Regardless, whereas some countries in Latin America have been plagued with inflation and currency problems, Panama’s dollar-based economy is showing relatively stable pricing.
That stability has contributed to Panama becoming a darling of investors.
Reuters, October 12, 2015, by Elida Moreno
Panama’s consumer prices returned to deflationary territory in September, falling by 0.4 percent compared with the same month last year, the country’s statistics office said on Monday.
Compared to the previous month, consumer prices fell by 0.5 percent in September, the statistics office said.
An office spokesman noted that changes in prices partly reflected the fact that the base year for the calculation was changed to 2013 from 2002 beginning in November 2014.
In February, consumer prices in Panama also fell by 0.4 percent compared to the year-earlier period.”