Panama: Consumer prices fall again in January
Latest reading: Consumer prices decreased 0.2% in annual terms in January, matching December’s reading and marking the joint-smallest dip in consumer prices since August 2024. Looking at the details of the release, January saw prices for food and non-alcoholic beverages rise at the quickest pace in a year. This broadly offset a decline in housing and utilities costs plus a sharper drop in transport prices.
The trend pointed down slightly, with annual average inflation coming in at 0.6% in January (December: 0.7%).
Lastly, consumer prices rose 0.26% over the previous month in January, accelerating from the 0.18% increase logged in December. January’s result was the highest reading since March 2024.
Panelist insight: EIU analysts commented on the outlook:
“Inflation will be subdued throughout our forecast period, anchored by dollarisation. […] We expect some demand-side pressures to build in 2025 as economic growth picks up and more public investment projects enter the construction phase. These factors will lift inflation to about 2% in 2025.”