Consumer prices in Panama dropped 0.1 percent year-on-year in December 2019, following a 0.3 percent decline in the previous month. Less deflation was mainly explained by a 0.7 percent rebound in prices for transport (vs -1.6 percent in November). Also, cost of housing and utilities went up 0.2 percent after remaining unchanged in the previous month. In contrast, prices fell further for food & beverages (-0.4 percent vs -0.1 percent) and recreation & culture (-0.8 percent vs -0.4 percent). Meanwhile, inflation for education remained steady at 0.7 percent, while liquor & tobacco booked the highest rate (1.5 percent). On a monthly basis, consumer prices declined 0.2 percent after remaining unchanged in November. Inflation Rate in Panama averaged 2.97 percent from 2008 until 2019, reaching an all time high of 10.04 percent in September of 2008 and a record low of -0.70 percent in October of 2019. source: Instituto Nacional de Estadística y Censo - Panamá
Inflation Rate in Panama is expected to be 0.80 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Panama to stand at 1.70 in 12 months time. In the long-term, the Panama Inflation Rate is projected to trend around 2.10 percent in 2020, according to our econometric models.