Paraguay Producer Price Inflation Ease in December

Paraguay’s Producer Price Index fell 1.5% year-on-year in May 2026, following a 1.0% decline in April and marking the fourth consecutive month of producer deflation. Imported products remained the main source of downward pressure, particularly in categories such as metal products, machinery and equipment, food, beverages and tobacco, textiles and leather goods, and non-metallic transportable goods. This contrasted with the positive contribution from domestic products, which helped limit the overall decline, supported by stronger price growth in domestic food, beverages and tobacco, textiles and leather products, live animals and animal products, and non-metallic transportable goods.

Paraguay’s Producer Price Index fell 1% year-on-year in April 2026, following a 0.7% decline in the previous month. Producer prices posted an annual contraction for the third consecutive month, mainly driven by negative contributions from domestic agricultural and horticultural products, as well as imported categories including metal products, machinery and equipment, non-metallic transportable goods, and food, beverages, tobacco, textiles, and leather products. From a grouping perspective, imported products accounted for most of the downward pressure, while domestic products made a positive contribution that partly offset the decline. The domestic categories supporting the index included food, beverages, tobacco, textiles and leather products, live animals and animal products, and non-metallic transportable goods.

Paraguay’s producer prices rose 1.2% year-on-year in December 2025, easing from a 2.6% increase in November. Inflation in domestic industrial products slowed to 4.7% from 6.2%, while deflation in imported goods deepened to -4.8% from -3.2%. On the domestic side, the strongest price increases were recorded in minerals (1.6%) and other manufactured products (0.6%). These gains were partly offset by declines in imported metal products, machinery and equipment (-1.0%) and non-metallic transportable goods (-2.4%).