Palau Inflation Rate
Year-on-year change in the consumer price index (CPI).
Inflation Rate in Palau decreased to -0.42 percent in 2025 from 2.23 percent in 2024.
Palau Inflation Rate — History
Drag or pinch to zoom. Dashed line: IMF World Economic Outlook projection. Other sources can be switched on in the legend.
Palau Inflation Rate — analysis in simple words
Latest reading
Inflation Rate in Palau decreased to -0.42 percent in 2025 from 2.23 percent in 2024.
Over the last three years it rose once and fell twice.
Recent trend
A year earlier (2024) it was 2.2%, so the latest figure is 2.7 percentage points lower.
Over the past five years the average was 5.9%, with a range from -0.4% to 12.8%. The latest value is below that five-year average.
Historical context
This data series starts in 2002 and has 24 annual observations. The latest reading is higher than 8% of all of them.
The highest value on record is 12.8% (2023) and the lowest is -1.3% (2002). The long-run average is 3.4%.
Compared with other countries
Among 197 economies with recent data, Palau ranks 191st from the top. The median across all these economies is 3.3%, so Palau is below the typical country.
Within East Asia & Pacific (31 economies with data) it ranks 30th; the regional median is 2.9%.
IMF outlook
The IMF World Economic Outlook projects 1.7% in 2026 and 3.7% in 2027 for Palau. Projections are forecasts, not actual data, and are revised as new information arrives.
Statistics
- Latest
- -0.4%2025
- Previous
- 2.2%
- 5-year average
- 5.9%
- Long-run average
- 3.4%since 2002
- All-time high
- 12.8%2023
- All-time low
- -1.3%2002
- Observations
- 24Annual
Recent Data
| Period | Value | Change |
|---|---|---|
| 2025 | -0.4% | ▼ −2.7 pp |
| 2024 | 2.2% | ▼ −10.6 pp |
| 2023 | 12.8% | ▲ +0.5 pp |
| 2022 | 12.4% | ▲ +9.7 pp |
| 2021 | 2.6% | ▲ +2.4 pp |
| 2020 | 0.2% | ▼ −0.0 pp |
| 2019 | 0.3% | ▼ −1.8 pp |
| 2018 | 2.1% | ▲ +0.7 pp |
| 2017 | 1.4% | ▲ +2.5 pp |
| 2016 | -1.0% | ▼ −2.0 pp |
| 2015 | 0.9% | ▼ −3.2 pp |
| 2014 | 4.2% | ▲ +0.8 pp |
| 2013 | 3.4% | ▼ −0.3 pp |
| 2012 | 3.6% | ▼ −1.1 pp |
| 2011 | 4.7% | ▲ +3.2 pp |
| 2010 | 1.4% | ▲ +0.0 pp |
| 2009 | 1.4% | ▼ −10.5 pp |
| 2008 | 12.0% | ▲ +8.7 pp |
| 2007 | 3.2% | ▼ −1.2 pp |
| 2006 | 4.4% | ▲ +0.5 pp |
| 2005 | 4.0% | ▼ −1.0 pp |
| 2004 | 5.0% | ▲ +4.0 pp |
| 2003 | 0.9% | ▲ +2.2 pp |
| 2002 | -1.3% |
Inflation Rate — Palau vs Peers
Latest available reading for each economy (periods may differ). Palau highlighted.
More Palau indicators
Understanding Inflation Rate — a simple guide
What it measures
The year-on-year change in the consumer price index (CPI) — the cost of a representative basket of goods and services bought by households.
How it is calculated
The statistics office tracks the prices of a fixed “basket” of goods and services that a typical household buys — food, fuel, rent, clothes, transport, education and more. The inflation rate is the percentage change in the price of this basket compared with the same month a year earlier.
If the basket cost ₹10,000 in July last year and ₹10,440 in July this year, the inflation rate is 4.4%.
High inflation means money buys less than before. Central banks often respond by raising interest rates, which can affect loans, bond prices and the stock market.
Low inflation means prices are stable. Very low or negative inflation (deflation) can be a sign of weak demand.
Why it matters for the economy and markets
Inflation erodes purchasing power and is the primary target of most central banks. Persistent inflation above target usually leads to higher policy rates; low inflation gives room for easing.
How to read it
Many central banks target around 2% (India targets 4% within a 2–6% band). Monthly data shows turning points earlier than annual averages; base effects from the previous year can make the year-on-year figure swing.
What to look at alongside it
Core inflation (without food and fuel), the policy interest rate, wage growth and oil prices.
Key terms
- CPI
- Consumer Price Index — the index used to measure household inflation.
- YoY
- Year-on-year: compared with the same period one year earlier.
- Deflation
- A sustained fall in the general price level (negative inflation).
- Core inflation
- Inflation excluding volatile items like food and energy.
Data source
World Bank — World Development Indicators (series FP.CPI.TOTL.ZG), annual data from 2002 to 2025. Values are shown exactly as published by the source and may be revised later.
How to use the chart
Use the 5Y / 10Y / 25Y / Max buttons to change the time range, or drag the slider under the chart. Hover (or tap) on the line to see the exact value for any period. Dashed lines and hatched bars are IMF projections, not actual data. The “Download CSV” button gives you the full data series.
Frequently asked questions
What is the current inflation rate of Palau?
What is the highest and lowest inflation rate of Palau?
What is the IMF projection for Palau inflation rate?
What does inflation rate measure?
Data are sourced from official international organisations (IMF, World Bank, BIS) and national authorities, and are shown for educational and informational purposes only. They are not investment advice and no recommendation is made. Figures may be revised by the source; IMF figures for the current and future years are projections. This page was last updated on Saturday, October 17, 2026.