Paraguay Producer Prices Extend Decline

Paraguay’s Producer Price Index fell 1.5% year-on-year in July 2026, following a 1.8% decline in June and marking its sixth consecutive annual decrease. The result was mainly driven by negative contributions from the domestic agriculture and horticulture products category, as well as imported metal products, machinery and equipment, non-metallic transportable goods, and food, beverages and tobacco, textiles and leather products. By product grouping, imported products made the largest negative contribution to the annual result. This was partially offset by a positive contribution from domestic products, supported by favorable performance in non-metallic transportable goods, other manufactured products, live animals and animal products, and food, beverages and tobacco, textiles and leather products.

Paraguay's Producer Price Index fell 1.8% year-on-year in June 2026, following a 1.5% decline in May and marking its fifth consecutive annual decrease. The decline was driven mainly by lower prices for domestically produced agricultural and horticultural products, as well as imported metal products, machinery and equipment, non-metallic manufactured goods, and food, beverages, tobacco, textiles, and leather products. Overall, the annual decline was primarily explained by falling prices of imported goods. This was partly offset by higher prices for domestically produced goods, particularly food, beverages, tobacco, textiles and leather products, forestry products, and non-metallic manufactured goods.

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.