Inflation Rate (CPI): Panama

Analysis# Panama Inflation Rate (CPI) Panama's inflation rate stands at 2% in 2026, reflecting moderate price growth well below its historical peak of 13.8% in 1980. The country has experienced a dramatic 85.5% decline in inflation over the past 46 years, demonstrating sustained progress toward price stability. Current levels remain above the deflation trough of -1.6% recorded in 2020, positioning Panama within a normalized range typical of stable emerging markets. The period from 2017 to 2020 marked a significant disinflationary shift, with inflation declining from 0.9% to -1.6% as pandemic-related economic disruption suppressed demand. Recovery began in 2021 (1.6%), accelerating to a recent peak of 2.9% in 2022 before moderating to projected 2% in 2026. This stabilization pattern suggests Panama's central bank has successfully managed inflation expectations, with forecasts indicating a return to low single-digit growth ahead.