The annual inflation rate in Paraguay fell to 3.2 percent in December 2018 from 4.0 percent in the prior month. It was the lowest inflation since June 2017. The steep downturn was mainly explained by a 0.6 percent drop in prices for food & beverages (vs +2.2 percent in November) and a 2.3 percent decline in prices for liquor & tobacco (vs -2.0 percent). Meantime, inflation for transport slowed down to 10.3 percent from 11.2 percent. In contrast, inflation for utilities edged up to 4.6 percent (vs 4.5 percent). On a monthly basis, consumer prices went down 0.3 percent, following a 0.7 percent rise in the previous month. Inflation Rate in Paraguay averaged 5.47 percent from 2005 until 2018, 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 4.00 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 4.20 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.