Paraguay’s inflation at 2.2% in the first half of 2023, significantly lower than in the previous year

Paraguay has reported an accumulated inflation rate of 2.2 percent for the first half of 2023, a significant decrease from the 6 percent recorded during the same period last year, according to the Central Bank of Paraguay (BCP).

In June 2023, the Consumer Price Index (CPI) showed a negative inflation rate of -0.3 percent, lower than the 0.5 percent increase observed in June 2022.

The annual inflation rate stood at 4.2 percent, down from 5.1 percent in May 2023 and a significant decrease from the 11.5 percent rate recorded in the same period last year.

The BCP’s report highlighted that decreases in certain food items and fuels characterized the price evolution in June.

Meat, fruits, vegetables, oils, poultry, and pork witnessed significant price declines, while cereals, bakery products, flours, pasta, and dairy products experienced price increases.

Fuel prices continued to decrease, affecting the transportation sector.

However, prices of services, such as rents, home equipment repairs, meals, beverages consumed outside the home, take-out meals, and tourist packages, increased.

Health expenses, including hospital services, dental care, medical care, laboratory tests, and pharmaceuticals, also saw price increases.

Additionally, durable goods like vehicles, household appliances, and computer equipment recorded price increases.

Paraguay’s inflation rate for the first half of 2023 remained relatively low, indicating a positive trend compared to the previous year.