Panama's inflation rate closed 2024 with an annual cumulative rate of 0.7% and a year-over-year rate of -0.2%, due to a decrease in prices for communications, clothing and footwear, and health, according to the state statistical entity. Inflation in Panama registered a national variation of 0.2% in the past January, compared to the previous month, driven by sectors such as financial services, public utilities, and recreation, according to data from the National Institute of Statistics and Census (Inec). In its commentary on the Consumer Price Index (CPI), Inec does not specify the year-on-year inflation rate, which closed 2025 at -0.2%. The 0.2% variation in January at the national level is a result of price increases in the insurance and financial services groups by 1.1%; housing, water, electricity, and gas by 0.9%; recreation, sports, and culture by 0.5%; transportation by 0.4%; restaurant and accommodation services by 0.2%; and food and non-alcoholic beverages; and alcoholic beverages and tobacco, both with a 0.1% increase. In 2023, the inflation rate closed with a cumulative rate of 1.5% and a year-over-year rate of 1.9%, while in 2022 they were 2.1% and 2.9%, respectively. What the report of the consulted statistical entity details for EFE this Monday is that the CPI in the province of Panama, where the capital is located, presented a monthly variation in January of 0.5%, more than double the national index. On the other hand, the groups that showed a decrease in prices were educational services, at -0.5%; clothing and footwear by -0.2%; furniture, household equipment, and routine household maintenance; and information and communication, both at -0.1%. It is detailed that the greatest variation in the housing, water, electricity, and gas division was presented in 'electricity with 4.8%, a data that coincides with the increase in the electricity tariff that has been applied since January 1 and that especially affects the middle class, which consumes 300 kilowatts/hour (kWh) or more per month.
Panama's Inflation Slows to 0.7% in 2024
Panama's inflation rate closed 2024 at 0.7% annually and -0.2% year-over-year. The price increase in January was driven by rising costs in the financial and utilities sectors, while the most significant decrease was observed in education and communications.
