Panama closed 2025 with a small decline in consumer prices overall, even though December saw a modest month-to-month increase. According to Panama’s Institute of Statistics and Census (INEC), the Consumer Price Index (CPI) rose 0.1% in December 2025 vs November, while the annual result for 2025 vs 2024 was -0.2%. (INEC Panamá)
What moved prices in Panama in December
INEC attributed the 0.1% monthly increase mainly to higher prices in:
- Food and non-alcoholic beverages (+0.8%)
- Housing, water, electricity and gas (+0.2%)
- Smaller increases (+0.1%) in areas like information and communication, recreation/culture, restaurants and accommodation, and personal care and other services
At the same time, several categories fell, including:
- Transport (-0.3%)
- Alcohol and tobacco (-0.2%)
- Clothing and footwear (-0.2%)
- Household goods and health (both around -0.1%)
What this means in plain English
A -0.2% annual reading is close to flat pricing, just slightly negative. That usually feels like:
- Day-to-day costs are not accelerating broadly
- Some items still rise (food often does), but other categories can offset them (transport can be a big one)
How Panama compares to the United States (and key states)
In the US, inflation was higher. The US CPI (CPI-U) increased 2.7% over the 12 months ending December 2025. (Bureau of Labor Statistics)
Because the US does not publish one single CPI number for each state every month, the closest consistent comparison is metro-area CPI (a practical proxy people use for state-level context). Here are your requested examples:
US inflation snapshots (metro proxies)
- California (Los Angeles area): +3.0% (12 months ending Dec 2025) (Bureau of Labor Statistics)
- Hawaii (Urban Hawaii): +2.4% (12 months ending Dec 2025)
- New York (NYC metro area): +3.2% (12 months ending Dec 2025)
- Texas (Houston metro): +1.6% (12 months ending Dec 2025)
- Florida (Miami metro): +2.6% (12 months ending Dec 2025)
- Colorado (Denver metro): +2.2% (12 months ending Nov 2025, latest bimonthly reading shown in the national CPI release)
Bottom line: Panama’s 2025 reading (-0.2%) indicates a notably calmer price environment than the US overall (+2.7%) and also below the metro inflation rates commonly associated with those US states. (INEC Panamá)
Real estate angle: how could this affect property decisions?
This is not a guarantee of lower home prices, but lower inflation can shape the landscape:
- Budgeting and cost-of-living planning gets easier for residents and expats when prices are broadly stable.
- Construction and renovation costs may still move around (materials and labor can be uneven), but broad consumer inflation is not adding extra upward pressure everywhere.
- Because Panama is dollarized, US interest-rate conditions still matter for financing sentiment, even if local inflation is lower. (In other words: Panama can have flat prices while borrowing conditions still feel “US-driven”.)
Related communities to watch
If you are tracking lifestyle costs and housing decisions across Panama, these community pages may help you compare areas:
- Boquete: https://www.casasolution.com/communities/boquete-panama/
- Azuero Peninsula: https://www.casasolution.com/main-community/azuero-peninsula-real-estate/
Need help making sense of the numbers for your move or investment?
Casa Solution Real Estate can help you compare areas, budgeting realities, and on-the-ground market conditions so you can make decisions with clearer expectations. Reach out anytime if you want options aligned with your lifestyle and timeline.
Date written: January 18, 2026
