Inflation Rate (CPI): Palau

Analysis# Palau Inflation Rate (CPI) Palau's inflation rate stood at 2.9% in 2026, representing a sharp decline from the economy's recent inflationary peak of 13.2% in 2022. The current reading sits well below historical extremes, though modestly above the all-time low of -1.3% recorded in 2016. Since 2001, the cumulative change in inflation reached 514.3%, reflecting substantial volatility across the 29-year period. The most dramatic turning point occurred between 2021 and 2022, when inflation surged from -0.5% to 13.2%—a shocking 13.7 percentage-point jump driven by global supply chain disruptions and commodity price spikes. The subsequent correction proved swift: inflation fell to 12.4% in 2023, then plummeted to 3.6% in 2024. With readings of 1.8% in 2025 and 2.9% in 2026, Palau's inflation trajectory suggests stabilization near modest, sustainable levels.