Paraguay Inflation Hits 22-Month Low

Annual inflation in Paraguay eased to 2.3% year-on-year in February 2026, down from 2.7% in January, marking the lowest level since 2020. The slowdown was largely driven by a sharper decline in transport prices (-9.35% versus -7.14%), along with moderating increases in food (6.2% versus 6.7%), housing and utilities (2.1% versus 2.2%), furnishings and household equipment (2.1% versus 2.3%), restaurants and hotels (9.3% versus 9.9%), and health (1.8% versus 1.9%). In contrast, price growth accelerated for clothing and footwear (1.8% versus 1.7%), education (6.0% versus 5.0%), communication (2.6% versus 2.5%), and alcoholic beverages and tobacco (2.0% versus 1.9%). Inflation for recreation and culture stood at 3.2%. Core inflation also declined, falling to 3% from 3.3% in January. On a monthly basis, consumer prices were unchanged, following a 0.6% increase in the previous month.

Paraguay’s annual inflation rate eased to 2.7% in January 2025 from 3.1% in December, marking its lowest level since April 2021. Price pressures were strongest in food goods, where inflation reached 6.7%, followed by services at 3.7%. Income-related inflation remained subdued at 0.7%. In contrast, other goods prices recorded deflation of 1.6%. Core inflation stood at 3.3%, remaining above the headline rate. On a monthly basis, consumer prices rose 0.6% in January, reversing a 0.3% decline in the previous month.

Paraguay’s annual inflation rate eased to 3.1% in December 2025 from 4.1% in November, the lowest since February 2024. Food and non-alcoholic beverage prices rose 7.1%, slowing from a 10% increase in the prior month. Inflation also moderated for alcoholic beverages and tobacco (1.7% vs 1.9%), furniture and household articles (2.8% vs 2.9%), and communication (3.0% vs 3.2%). Deflation deepened in transport (-5.9% vs -4.4%) and gasoline (-9.0% vs -5.1%). On a monthly basis, consumer prices fell 0.3% after rising 0.2% in November.