Paraguay Inflation Eases to 1.6%

Paraguay’s annual inflation eased to 1.6% in July 2026 from 2.1% in June, moving further below the central bank’s 3.5% target. The largest price increases were recorded in restaurants and hotels (9.7%), followed by education (5.9%), furniture and household goods (2.1%), healthcare (1.9%), and housing and utilities (1.8%). Meanwhile, transport prices fell 1.1% as lower oil prices, driven by easing Middle East tensions, helped curb overall inflation. Core inflation, which excludes volatile items, fell to 1.5% year-on-year from 1.7% in June. On a monthly basis, consumer prices fell 0.1%, following a 0.3% decline in the previous month.

Paraguay’s annual inflation eased to 2.1% in June 2026 from 2.4% in May, moving further below the central bank’s target of 3.5%. Price pressures remained strongest in restaurants and hotels, which rose 8.6% year-on-year, followed by education (5.9%), recreation and culture (2.9%), and food and non-alcoholic beverages (2.2%). In contrast, transport prices fell 1.2%, helping to contain the overall inflation rate. On a monthly basis, consumer prices declined 0.3%, reversing a 0.1% increase in May. Meanwhile, core inflation, which excludes more volatile items, slowed to 1.7% from 1.9%, pointing to softer underlying price pressures.

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.