Inflation rates by country and year

-1.3%2.2%5.8%9.3%12.8%
-1.3%2.2%5.8%9.3%12.8%
2002-1.3%
20133.4%
2025-0.4%
Source: World Bank

Data: World Bank, annual %. For information only — not financial advice.

Year2025Inflation Rate-0.4%

Behind the curve

Turning points in Palau

  1. 2008↑ Upward pressure

    The world food price crisis — Wikipedia (opens in a new tab)

    Palau imports most of its food and fuel, and uses the U.S. dollar, so the 2007–08 global price surge fed directly into local prices.

    Federal Reserve
  2. 2020↓ Downward pressure

    The pandemic recession — Wikipedia (opens in a new tab)

    The collapse of tourism during the pandemic cut demand sharply, easing inflation.

    Federal Reserve
  3. 2022↑ Upward pressure

    The post-pandemic inflation surge — Wikipedia (opens in a new tab)

    Higher global food and fuel prices lifted Palauan prices in 2022.

    Federal Reserve

These are selected historical influences, not a complete account of inflation. An upward-pressure event can coincide with a peak when its inflationary effect has already occurred or when other forces begin pushing inflation lower. The markers show the years in which events occurred, although their effects may extend into later years.

What is the inflation in Palau?

The annual inflation rate in Palau was -0.4% in 2025, the most recent year in the World Bank dataset. That means prices fell 0.4% on average compared with the year before. Use the chart above to explore Palau's full inflation history from 2002 to 2025, and to compare it with any other country.

How inflation in Palau has changed

Inflation in Palau peaked at 12.8% in 2023 and reached its lowest point at -1.3% in 2002. Averaged across the 24 years of available data (2002–2025), the rate has been 3.4% per year.

Frequently asked questions about inflation in Palau

What is the current inflation rate in Palau?

The latest available annual figure is -0.4% in 2025, from the World Bank. Because the figures are reported annually, they may not reflect the most recent monthly reading published by Palau's statistical office.

What was the highest inflation rate in Palau?

The highest annual inflation rate on record is 12.8%, reached in 2023.

What was the lowest inflation rate in Palau?

The lowest annual inflation rate on record is -1.3%, recorded in 2002.

Where does the inflation data for Palau come from?

All figures come from the World Bank's World Development Indicators (indicator FP.CPI.TOTL.ZG), which report annual consumer price inflation for more than 200 countries and territories from 1960 onward.