Price controls cut basic food basket by $63

THE COST of the basic food basket in Panama has been reduced by $63.11 per month as a result of price controls introduced in July said a government announcement on Sunday, December 28.
The figures were calculated by comparing prices with the period from July to November 2013, explained the Presidency in a statement that highlights some data from the Department of Economic and Social Analysis, Ministry of Economy and Finance (MEF).
“This achievement is a direct result of the implementation by the Government of the Republic of Panamaof the Price Control Act and its enforcement by local owners who sell established products,” the statement said.
Panamanian President Juan Carlos Varela, signed the decree on July 1, when he took office for a period of five years. The decree controls the price of 22 products of the basic basket as a measure to lower the cost of living.
According to the Authority for Consumer Protection and Antitrust (ACODECO), that tracks the compliance in stores, 88.7% of traders comply with the decree.
During the first six months after the entry into force of the Price Control Act, ACODECO verified 18,985 stores, of which 16 841 complied with the provisions of the Act.
The Ministry of Trade and Industry (MITI) found that there was no shortage of products during the term of the decree.
The temporary regulation of retail prices of was extended for six months from January 2015.
Among the 22 products included in the controls are: selected meats, whole chickens, rice, domestic onions, tomatoes and potatoes , cassava, medium eggs), and dried milk.