Panama: cost of living

Are prices rising in Panama?

Urban consumer prices in Panama rose 0.5% from August to September 2026 and were 2.8% higher than a year earlier, according to INEC's CPI commentary for September 2026. In the month, fuels and lubricants for personal transport rose 5.5%, electricity 4.0%, gas 2.0%, fruit 1.9% and vegetables 1.2%.

Food and non-alcoholic drink prices rose 0.5% in September, with increases in twelve of thirteen food classes. Prices rose slightly faster in Panamá province (3.0% over the year) than in the rest of urban Panama (2.7%). INEC publishes detailed tables by division, group, class and subclass alongside the commentary.

Official sources: INEC: CPI commentary, September 2026 (PDF)

How fast are prices rising in Panama?

According to the IMF, consumer price inflation in Panama was -0.2% in 2025. Since 2005 it has ranged from -1.6% (2020) to 8.8% (2008). Latin America & Caribbean median: 2.1%; Panama is 29th highest of 29. World rank, highest first: 157th of 165.

How much do people in Panama spend?

The latest figure from the World Bank, for 2024, is $8,494. That is the highest since at least 2005. Latin America & Caribbean median: $4,454; Panama is 4th highest of 20. Of 153 countries with 2024 data, 49th highest.

What is the extreme poverty rate in Panama?

The latest figure from the World Bank, for 2024, is 3.1%. The peak was 15.7% in 2006 and the low 2.9% in 2019. It is 5th highest of 14 in Latin America & Caribbean, where the median is 2.1%.

How many people in Panama are poor?

The World Bank puts the share of people below the national poverty line in Panama at 21.7% in 2023. Its high point since 2005 was 2006, at 38.3%; its low point was 2017, at 20.7%. It is 12th highest of 14 in Latin America & Caribbean, where the median is 26.6%. Of 39 countries with 2023 data, 18th highest.

What is Panama's Gini coefficient?

49.7: that is the Gini index in Panama for 2024, according to the World Bank. Since 2005 it has ranged from 48.9 (2023) to 54.6 (2006). It is 3rd highest of 14 in Latin America & Caribbean, where the median is 43.6.