With the continued decline in the value of the U.S. dollar it is expected that there will be inflation. Bernanke can't just print money out of nothing without this consequence. Panama's dependency on the U.S. dollar has it benefits, but it also comes at the expense of the insane actions by the U.S. federal reserve. Now if Panama had its currency tied to gold, where would they be today over October 2009? Gold trade at approximately $1100 an once then and today it is at $1350. That's about 20% increase in value which would mean the cost of everything would be going down 20% instead of up 4%. Did you know that many pundits are predicting gold to surpass $2000 this year? What does that mean for inflation in Panama? Ouch!
Machine translated from La Presna
Consumer price index rises 4.1%
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Raul A. Bernal
[email protected]
Panamanian inflation continues to rise and according to experts, the trend is to continue.
The latest report by the Comptroller General of the Republic shows that the consumer price index (CPI) last October shows an increase of 4.1% compared to October 2009.
The rise somewhat disagrees with the predictions of the Ministry of Economy and Finance to talk about the year closed with a 3% inflation after the increase in prices of goods and services, while economists say that 2010 will close above 4%.
The CPI in October 2009 against similar shows increases in all divisions. In other goods and services is an increase of 6.8%, transport 5.6%, clothing and footwear, 4.3%, food and beverage, and health 4.0%, 4.1%.
The segments of furniture, household equipment and routine maintenance of the house rose 3.9%, housing, water, electricity and gas, 3.4% education, 2.2% and leisure, entertainment and cultural services, 2.1%.
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