Until October 2022, inflation in Panama accumulates a growth of 3.1%, compared to the same period in 2021. Only in October it reflected a year-on-year variation of 1.7%, according to the Consumer Price Index (CPI), of the Institute National Statistics and Census (Inec) published by the General Accounting Office of the Republic.

The groups that showed an increase in their prices during the month of October were: food and non-alcoholic beverages, and restaurants and hotels, education, 2.5%; miscellaneous goods and services; housing, water, electricity and gas; furniture, items for the home and for ordinary household maintenance; and alcoholic beverages and tobacco.

While the groups that registered a decrease in their prices were the groups of: health; recreation and culture; transportation; communications; and clothing and footwear. But, what are the inflation forecasts for the end of 2022?

Although inflation in Panama, as in other countries, has been increasing in recent months, forecasts suggest that this country is among those with the lowest inflation rate in Latin America at the end of 2022.

According to the latest forecasts of the International Monetary Fund (IMF), the average annual inflation in Panama, Ecuador and Bolivia is 5%, the lowest rate forecast in all Latin American countries for this year.

While for Argentina and Venezuela it is estimated at 50% or more; Chile (20% -49.9%), Suriname (10% -19.9%), and for Colombia, Peru, Brazil, Paraguay, Uruguay, Guyana, French Guyana, Costa Rica, Nicaragua, Honduras, El Salvador, Guatemala and Belize (5 %-9.99%).

The economist Ramón Rodríguez said that in Panama, “due to having a dollarized economy and some comparative advantages, inflation will remain low”, even for the next year (2023).

In short, “we can say that inflation will be below double digits and will be one of the lowest in Latin America,” predicted the also dean of the Faculty of Economics at the University of Chiriquí.

Inflation is defined, as he said, as the generated and sustained increase in prices and can be caused by various factors or elements, such as an increase in production costs, an increase in demand or an increase in the money supply, but for In the case of Panama, the latter “does not” qualify because it does not have a Central Bank and does not issue banknotes.

In order to measure inflation, the increases in the basic basket are taken as a base, but for the economist, if other elements such as the Wholesale Price Index or other types of products that are not in the basket are taken into account, inflation probably It would be higher, because there are products that are “not” being considered and that “yes” have increased their prices.

So, according to Rodríguez, “no” all inflation should be seen as bad, because it is also a reflection of the increase in purchasing power. However, inflation becomes a little more complicated when the growth of purchasing power in one sector grows and in another decreases.

“In general terms, inflation is an interesting and somewhat complex issue because it is also associated with an improvement in the economy, an increase in the economy. The economic growth that the country is receiving can also be translated into prices”, he pointed out in a recent interview with this newspaper.

What is recommended to Panamanians in this environment of inflation, he added, is that they compare prices, be more cautious when buying and that they walk, especially during this time of year, when there is great demand for purchases at the end of the year . of year.

“But between inflation and unemployment, inflation is better, because if there is inflation, but there is employment, then there is how to buy,” Rodríguez pointed out, at a time when the total unemployment rate in Panama stands at 9.9%.