The annual inflation rate in Panama declined to 0.2 percent in December of 2018 from 0.8 percent in the previous month. It was the lowest inflation rate since July of 2016, as prices fell for several categories: transport (-1.6 percent vs +1.8 percent in November), communications (-1.2 percent vs -1.4 percent), clothing (-1.3 percent vs -1.2 percent), and recreation & culture (-0.3 percent vs -0.4 percent). Meantime, inflation for housing & utilities declined to 0.3 percent from 0.5 percent. In contrast, prices for food & beverages rose 0.7 percent after climbing 0.6 percent in November. In contrast, prices advanced at a faster pace for food & beverages (0.6 percent vs 0.4 percent). On a monthly basis, consumer prices fell 0.4 percent for the second month. Inflation Rate in Panama averaged 3.27 percent from 2008 until 2018, 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.