The annual inflation rate in Paraguay increased to 2.7 percent in February 2019 from 2.4 percent in the previous month. Cost of food & non-alcoholic beverages rebounded (0.6 percent compared to -1.0 percent in January) and prices rose further for furnishing & household equipment (2.9 percent compared to 2.8 percent); health (2.1 percent compared to 2.0 percent); education (3.1 percent compared to 3.0 percent); communications (0.9 percent compared to 0.7 percent). On the other hand, cost slowed for transport (6.2 percent compared to 6.7 percent); housing & utilities (3.8 percent compared to 4.1 percent); miscellaneous goods & services (3.3 percent compared to 3.4 percent) and recreation & culture (2.5 percent compared to 3.2 percent). Core inflation, which excludes volatile items such as fruits, vegetables and fuels, went up to 2.6 percent in February from 2.4 percent in January. On a monthly, basis consumer prices advanced 0.6 percent, after a flat reading in the prior month. Inflation Rate in Paraguay averaged 5.43 percent from 2005 until 2019, reaching an all time high of 13.40 percent in June of 2008 and a record low of 0.90 percent in May of 2013.
Inflation Rate in Paraguay is expected to be 3.10 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Paraguay to stand at 4.00 in 12 months time. In the long-term, the Paraguay Inflation Rate is projected to trend around 4.00 percent in 2020, according to our econometric models.