Consumer prices in Panama dropped 0.6 percent year-on-year in August 2019, after falling 0.3 percent in the previous month. It was the sharpest fall in consumer prices since at least 2008, as prices declined further for transport (-3.5 percent vs -2.3 percent in July); housing & utilities (-0.4 percent vs -0.2 percent), and recreation & culture (-0.7 percent vs -0.6 percent). Also, cost of food & beverages slowed (0.6 percent vs 0.8 percent), mainly due to fish (-0.5 percent) and beverages (-0.5 percent). Additionally, inflation was steady for restaurants & hotels (at 1.2 percent). On a monthly basis, consumer prices went down 0.3 percent, following a 0.2 percent increase in the prior month. Inflation Rate in Panama averaged 3.07 percent from 2008 until 2019, reaching an all time high of 10.04 percent in September of 2008 and a record low of -0.60 percent in August of 2019.
Inflation Rate in Panama is expected to be -0.40 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 1.10 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.