consumer affairs

As gas prices continue to rise, consumers find some relief

According to the CPI index for March, the cost of goods in some areas actually decreased.

Panama can do little, however, to control the cost of gasoline or the value of the dollar.

LA PRENSA/ David Mesa

lower:Despite widespread inflation, consumers saw some prices decrease in March. Unfortunately, the price of gas and food does not show any signs of decreasing. 1021929

Although the costs of many items, most notably food and gasoline, have increased drastically lately, it is still possible to find some bargains.

In fact, the country's Consumer Price Index actually declined slightly in March in several areas, such as footwear (-.3 percent), home prices (-1.1 percent), personal care (-1.8 percent), entertainment equipment (-1 percent) and education (-3.6 percent.)

Pedro Acosta, president of the Unión de Consumidores y Usuarios de la República de Panama, said that the country's strategic location allows it better access to goods than other regions.

Acosta, however, said that consumers still have to be wary about purchasing discounted goods that may be of inferior quality.

Zona Libre de Colón Assistant Manager Juan Fidel Macías said that a number of other issues have put Panama consumers in a good position, such as a strong banking sector and a growing tourism industry. Those things allow merchants to keep prices low. Rubén Gerschfeld, chief executive of chain stores El Chocho and El Campeón, said his business struggles to keep prices down while dealing with the rising prices charged by suppliers.

Economist Aristides Hernández said that Panama can do little to control rising prices of goods such as gasoline, nor can it control the value of the dollar. He encouraged the government to take more control of the country's agricultural sector, so that the food supply would not be as impacted by the speculation that has affected oil prices.

He suggested that mechanisms be put in place so that farmers could sell their products directly to the public, thus avoiding intermediaries who could unfairly raise prices.

Hernández also suggested that the government adjust some of its tariff policies on imports to reduce inflation, as well as promoting the circulation of Euros, which is a stronger currency right now than the U.S. dollar.

"These measures should be accompanied by an increase in wages in the private and public sectors for those who earn less than $500 a month," the economist concluded.