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 deflation since the beginning of the current series in 2008, as prices declined for: transport (-3.5 percent vs -2.3percent in July); housing & utilities (-0.4 percent vs -0.2 percent), and recreation & culture (-0.7 percent vs -0.6 percent). In contrast, inflation for food & beverages stayed at 0.8 percent, despite a 0.5 percent fall in prices of fish and a 0.5 percent drop in prices of beverages. Also, inflation for restaurants & hotels remained steady 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 0.20 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 1.50 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.