Paraguay's Inflation Eases to Lowest Since October 2020

Paraguay's annual inflation edged up to 2.4% in May 2026 from 2.3% in April. Price pressures were driven mainly by restaurants and hotels (8.4%), education (5.9%), food and non-alcoholic beverages (2.7%), and recreation and culture (2.8%). Additional increases were recorded in alcoholic beverages and tobacco (1.2%), housing and utilities (1.8%), furniture and household goods (2.0%), and healthcare (2.0%). On a monthly basis, consumer prices rose 0.1%, bringing cumulative inflation in the first five months of the year to 2.2%. Meanwhile, core inflation, which excludes more volatile items, remained unchanged at 1.9%, suggesting underlying price pressures stayed relatively contained.

Annual inflation in Paraguay rose to 2.3% in April 2025 from 1.9% in March. Price increases were led by restaurants and hotels (8.0%) and education (6.1%). Food prices rose 2.0%, while housing and utilities increased 1.5%. Other gains were seen in recreation and culture (3.1%), communication (2.1%), and furniture and household appliances (1.9%). At the subsector level, fuel prices jumped 12.2%, driven by concerns over oil supply in the Middle East. Core inflation eased to 1.9% from 2.2% in March. On a monthly basis, consumer prices rose 0.8%, matching the previous month’s pace.

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.