Panama's basic family food basket price rises $3; El Niño impact eyed

The cost of Panama's basic family food basket has risen by $3 during the first half of August, reaching approximately $306, according to the Authority for Consumer Protection and Defense of Competition (Acodeco). This increase comes as authorities remain vigilant about the potential impact of the El Niño phenomenon on food production and supply chains.

Acodeco Director Ramón Abadi confirmed the price adjustment, noting that constant bi-weekly reviews of basic basket products reveal ongoing price fluctuations. Specific items that saw increases in supermarkets during the August 15th evaluation included sliced bread, yam, and chicken. In smaller neighborhood stores and groceries, price hikes were observed for yellow onion, soup meat, and premium ground beef.

Beyond immediate price changes, Acodeco is actively assessing the potential effects of El Niño on agricultural output. The anticipated climatic conditions associated with El Niño could significantly affect crop yields, subsequently influencing food availability and market prices. Abadi indicated that Acodeco is maintaining communication with the Ministries of Economy and Finance, Commerce and Industries, and Agricultural Development, providing them with regular reports on price trends and supply levels.

The objective of this inter-agency collaboration is to prevent shortages and ensure an adequate supply of products to help stabilize the cost of the basic food basket. While some items have become more expensive, the evaluation also identified products with price reductions, including first-grade rice, packaged cooked ham, pressed white cheese, traditional ground coffee, and yellow cheese. However, the price of rice is a particular point of attention, with producers warning that El Niño-related conditions might lead to price increases later this year. Acodeco will continue its bi-weekly monitoring of the basic food basket components while assessing the evolving climate conditions and their impact on national production.

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At this moment, we have had a constant review every 15 days of all the products in the basic basket and how the prices are doing, and we have a small increase of $3.00.