Consumer prices in Panama dropped 0.3 percent year-on-year in January 2019, following a 0.2 percent increase in the previous month. It is the first decrease in consumer prices since October 2015. Prices fell for several categories, mainly transport (-3.5% vs -1.6%); recreation & culture (-0.5% vs -0.3%); communications (-1.3% vs -1.2%); housing & utilities (-0.5% vs -0.3%) and clothing & footwear (-1.2% vs -1.3%). In contrast, cost advanced at the same pace for food & non-alcoholic beverages (0.7%). On a monthly basis, consumer prices went down 0.3 percent, after decreasing 0.4 percent in December. Inflation Rate in Panama averaged 3.25 percent from 2008 until 2019, reaching an all time high of 10.04 percent in September of 2008 and a record low of -0.40 percent in February of 2015.
Inflation Rate in Panama is expected to be 1.10 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 2.00 percent in 2020, according to our econometric models.