Paraguay Inflation Falls to Lowest Since 2021

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.

Paraguay’s annual inflation held at 4.1% in November 2025. Most categories showed minimal variation. Notable shifts appeared in alcoholic beverages and tobacco (2.5% vs 1.9%), transport (-4.4% vs -4.9%), recreation and culture (2.7% vs 3.0%), and restaurants and hotels (8.8% vs 7.2%). On a monthly basis, inflation moved to 0.2% after a 0.1% deflation rate.