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Paraguay recorded inflation of 1.2% in July and accumulates 2.7% annually

RIO DE JANEIRO, BRAZIL – Paraguay’s monthly inflation stood at 1.2% in July, up from 0.4% in June, while the cumulative figure amounts to 2.7% in the first half of the year, according to data published Tuesday by the Central Bank of Paraguay (BCP).

The BCP relates this increase to the rise in food, fuels, durable goods, and some services of the basic basket.

Read also: Check out our coverage on Paraguay

The year-on-year variation climbed to 5.2%, higher than the 4.5% reported in June, and recovered from the 1.1% reported in July 2020.

Throughout July, the price of liquid household fuels soared to 7.3%, followed by cheese and beef offal, with 7.2% each.

Central Bank of Paraguay (BCP).
Central Bank of Paraguay (BCP). (Photo internet reproduction)

The BCP explains the rise in meat and beef offal prices by the increase in external demand, which translates into an increase in the cost in the local market.

According to the BCP, in the case of dairy products and derivatives, the price of milk rose in July due to higher production costs and seasonal factors affecting the sector’s performance.

As for the price of oil derivatives, the third increase in the year is related to the increase in the price of crude oil on the international market.

During July, the prices of eggs (-1.7%), dried vegetables (-1.1%), and carbonated beverages (-0.8%) fell.

The inflation target rate set by the BCP for 2021 is fixed at 4%.

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