Inflation in Panama
Panama - Inflation
Inflation falls to over one-year low in August
Inflation eased to 2.1% in August from July’s 3.5%. August's figure marked the lowest inflation rate since June 2021. A sharp deceleration in price pressures for transport largely explained the reading, following a drop in crude prices in August.
Annual average inflation remained at July's 3.2% in August. Finally, consumer prices fell 1.35% in August over the previous month, a sharper drop than July's 1.24% decrease.
Going ahead, our panelists expect inflation to pick up again by the end of the year. The August print was distorted by a base effect, as is clear from the more marginal change seen in month-on-month inflation. Economic growth—set to be the fastest in Central America this year—should bolster price pressures. That said, inflation is unlikely to return to the over nine-year high seen in June thanks to the government’s price cap on gasoline and diesel, which is to remain in place until January 2023.
Our panelists project that inflation will end 2022 at 3.7%, which is down 1.1 percentage points from last month’s forecast. The panel sees inflation ending 2023 at 2.6%.
Panama - Inflation Data
|Inflation Rate (CPI, annual variation in %)||0.1||0.7||0.9||0.8||-0.4|
5 years of economic forecasts for more than 30 economic indicators.
Panama Inflation Chart
Source: General Controllership of the Republic of Panama and FocusEconomics calculations.
Get a sample report showing our regional, country and commodities data and analysis.
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
October 19, 2022
Economic activity rose 12.8% year on year in August (July: +3.6% yoy).
September 19, 2022
Economic activity expanded 3.4% year on year in July (June: +8.4% yoy).
September 17, 2022
According to a preliminary reading, GDP growth softened to 9.8% year on year in the second quarter, from 13.6% in the first quarter.
September 15, 2022
Inflation eased to 2.1% in August from July’s 3.5%.
August 19, 2022
Economic activity rose 8.4% year on year in June, softening from May’s +26.3% increase.