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Consumer prices in Panama were made in December for the second consecutive month due to a drop in energy costs, transportation and fuel offset rises in food, the government said Wednesday.

The General Accounting Office said the consumer price index fell 0.4 percent in December. Prices in November fell 0.6 percent.


The prices of housing, water, electricity and gas decreased by 6 percent in December, while transport costs fell by 2.3 percent. However, food rose by 1.4 percent.

Inflation to 12 months to December was 6.8 percent. No comparative figures were available.


Panama, which uses the dollar as local currency, traditionally enjoyed lower inflation as the United States.

But last year, a rise in global food prices and fuel, coupled with strong domestic demand led inflation rates to their highest levels since the beginning of the 1980s.


In recent weeks, government workers and pensioners took to the streets to protest the hike in the cost of living.

In the 12 months ended in December, food prices grew by 14.9 percent and transportation 10.2 percent, mainly due to high food prices and oil for most of the year.


The President Martín Torrijos, who faces presidential elections in May, has sought to alleviate the discontent of the people by giving subsidies to energy and food to the poorest families.