Paraguay's Inflation Eases to Lowest Since October 2020

Annual inflation in Paraguay eased to 1.9% year-over-year in March 2026, down from 2.3% in February and marking the lowest level since October 2020. Food prices rose 3.1% following 6.2% inflation in February, while other goods prices fell 1.4%. Overall goods inflation stood at 0.8%. Services inflation was 3.9%, little changed from 3.8%, while income inflation was 0.6%. Fuel prices fell 2.6% after declining 12.1% in February, with deflation decelerating sharply amid Middle East oil supply concerns. Core prices rose 2.2% after rising 2.6% in February. On a monthly basis, consumer prices were 0.8% higher, following a flat reading in the prior month.

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.