Inflation News in Paraguay

Inflation news gathered from trusted sources: consumer and producer price data, wage growth and inflation expectations

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Paraguay Inflation Rises in September

Inflation

Paraguay’s annual inflation rate inched up to 1.7% in September 2026 from 1.5% in August, remaining comfortably below the central bank’s 3.5% target. The sharpest price increases were observed in fuels (18.9%) and in food consumed away from home (10.2%). In contrast, overall food prices fell by 1.0%, largely due to lower prices for fruits and vegetables. Service prices rose by 0.5%, while income inflation reached 3.8%. On a monthly basis, consumer prices increased 0.1%, following a flat reading in August. The material has been provided by InstaForex Company - www.instaforex.com

GIEWS Country Brief: Paraguay 25-September-2026

Inflation

Country: Paraguay Source: Food and Agriculture Organization of the United Nations **FOOD SECURITY SNAPSHOT** 1. **Strong demand by ethanol and feed industries supported above‑average maize plantings** 2. **Export of cereals in 2025/26 estimated at above‑average level** 3. **Food inflation eases to yearly low in August 2026** ## Strong demand by ethanol and feed industries supported above‑average maize plantings Harvesting of the 2026 main maize Z*afriña* season is heading to completion. Torrential rainfall amounts between mid‑July and mid‑August disrupted harvesting operations in key producing departments of Alto Paraná, Itapúa, Caaguazú and Canindeyú, resulting in localized crop losses and weighing on yield prospects. Nevertheless, production is forecast at above‑average level, as sustained demand from the domestic ethanol and feed industries supported an expansion in plantings. Aggregate maize production in 2026, including the minor maize season harvested between December 2025 and January 2026, is forecast at 5.5 million tonnes, above the five‑year average, but well below the record‑high level of the previous year, on account of large plantings.

Paraguay Holds Key Interest Rate at 5.50%

InflationMonetary Policy

Paraguay’s central bank left its policy rate unchanged at 5.50% at its September 2026 meeting. The bank stated that economic activity continues to perform well and remains consistent with its projected 4.5% growth for 2026. Annual inflation is still low, largely reflecting the behavior of goods prices, which rose 0.4%, driven mainly by non-energy goods. By contrast, inflation in services and rents is hovering around 3.5%. The bank projects year-end inflation at 3.3%, with a gradual convergence toward the target over the monetary policy horizon. Inflation expectations also remain anchored at the target. The external environment, however, continues to face risks. These include volatility in international petroleum product prices and uncertainty stemming from the conflict in the Middle East, particularly its potential impact on supply conditions and energy prices. In addition, market participants expect at least one more increase in the federal funds rate before the end of the year. The material has been provided by InstaForex Company - www.

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Paraguay Inflation Rises in September

GIEWS Country Brief: Paraguay 25-September-2026

Paraguay Holds Key Interest Rate at 5.50%

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