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IPFS News Link • Economy - International

To Stop Inflation Protests, Panama Fixes Prices Of Groceries, Medicine

•, By Tyler Durden

After enduring weeks of increasingly intense protests, strikes, and highway blockades that led to fuel and other product shortages, the Panamanian government last week announced it will exert control over the prices of 72 food items, and this week agreed to impose price caps on 150 medicines.

"With the regulation of the 72 products, the cost of the basic food basket would decrease by 30%, a savings of more than $80," according to a statement issued by the office of President Laurentino Cortizo. Panama uses the U.S. dollar as its currency.

Per TeleSUR:

The agreement covers actions to ensure the price stability of 72 products of the basic food basket, covering rice, bread, different types of fish, sausages, chicken, vegetables, and legumes, as well as cleaning and toiletries products.

In addition to the medicine price caps, the government said it would also set up channels for the direct purchase of medicines, in an effort to alleviate shortages at public hospitals. The price controls will be accomplished through a combination of caps, subsidies, tariff reductions and limits on margins.

The commitment was the culmination of the latest round of Catholic Church-mediated negotiations between the Panamanian government and representatives of a coalition of protesters that included labor unions, civic organizations and indigenous people. The broad protest movement was initially sparked by teachers striking over the higher cost of their commutes, due to higher gas prices.