And So It Starts - Bread Going Up 40% in Panama
Wednesday, April 02 2008 @ 06:47 pm EDT
Contributed by: Don Winner
By DON WINNER for Panama-Guide.com - Today an association of bakers announced they would be raising their prices as much as 40% in some cases due to the rising costs of their primary raw materials such as flour. Inflation, and a general across the board increase in the cost of living for the average Panamanian, is probably going to be the most significant issue the various political candidates will be talking about from now until the next national elections in May 2009. All basics for life are getting more expensive - fuel, electricity, food, rice, bread, potatoes, milk - and the average Panamanian spends a much greater percentage of their take home pay on food than families in the United States or Canada, for example. Inflation and the rising cost of living is going to be the #1 subject of debate, replacing safety and security in the streets. And remember this - if the Free Trade Agreement were passed then many basic food items would have been cheaper for Panamanian consumers due to lower or the removal of importation tariffs. So thanks for that, Pedro. But in reality most of the inflation in Panama is caused by external factors local politicians can't do a damn thing about anyway. Well, not much anyway - they can only apply short term "patch" fixes - tax over here to pay for a subsidy over there, but that's a short term fix.
Copyright 2008 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.