The annual inflation rate in Panama increased to 1 percent in October of 2018 from 0.8 percent in the previous month. Still, it was the second lowest inflation rate in five months. Prices rebounded for food and non-alcoholic beverages (0.4 percent compared to -0.2 percent in September) and rose faster for transport (3 percent compared to 1.9 percent). On the other hand, inflation slowed for miscellaneous goods and services (0.8 percent compared to 1 percent) and housing and utilities (0.6 percent compared to 0.7 percent) and were flat for recreation and culture (compared to 0.1 percent). Also, prices fell for clothing & footwear (-1.3 percent compared to -1.4 percent). On a monthly basis, consumer prices edged up 0.1 percent after remaining unchanged in September. Inflation Rate in Panama averaged 3.32 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 1.60 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 1.60 in 12 months time. In the long-term, the Panama Inflation Rate is projected to trend around 1.80 percent in 2020, according to our econometric models.