Paraguay Producer Prices Extend Decline

Paraguay’s Producer Price Index fell 1.7% year over year in August 2025, following a 1.5% decline in July and marking its seventh consecutive annual decrease. By product grouping, both domestic and imported products made negative contributions to the overall result. The decline was mainly driven by negative contributions from domestic agriculture and horticultural products, as well as imported metallic products, machinery and equipment, and food, beverages and tobacco, textiles, and leather products. Other sections, particularly domestic non-metallic transportable goods and other manufactured products, helped mitigate the decline. The PPI was unchanged on a monthly basis, while the cumulative change in the first eight months of the year stood at -0.7%.

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.