Rio Times Markets · Paraguay
Prices in Paraguay are rising slowly and steadily: annual inflation held at 1.7% in October, below what analysts expected.
Key Facts
- What Paraguay’s annual inflation was 1.7% in October 2026, the same as in September.
- Forecast Analysts expected 1.8%, so inflation came in 0.1 point lower.
- Target The central bank’s target is 3.5%, so inflation is 1.8 points below it.
- Power Index Paraguay ranks 10th of 14 in The Rio Times Latin America Power Index, with 36.0 points (October 2026 edition).
What The Data Show
Paraguay’s annual consumer price inflation was 1.7% in October 2026, unchanged from September. Annual inflation measures how much the average price of a basket of goods and services has risen over twelve months.
Analysts had expected 1.8%, so the figure came in 0.1 point lower than forecast. The gap is small, but it points to calm prices.
Where It Sits In The Trend
Inflation had risen to 1.7% in September, up from 1.5% in August, and October holds that level. The rate has therefore stopped climbing for now.
It stays 1.8 points below the central bank’s 3.5% target. Price pressure therefore looks subdued.
Why It Matters Abroad
Low inflation helps Paraguayan households keep their buying power. Paraguay is a small economy that sells soy, beef and hydropower electricity to its larger neighbours.
A reader abroad should see a stable, low-price economy in this release. One reading does not set a trend.
What We Do Not Know Yet
The release data we hold do not name a cause, and we do not know which goods and services held the rate at 1.7%. We will not guess at one.
We also do not know how the central bank will read the figure. Its next rate decision will show whether it sees a case for change.
What Would Change The Picture
A November reading above the 1.8% forecast would suggest price pressure is returning. A reading below 1.7% would show inflation cooling further.
Another 1.7% would extend the flat run. The next monthly release will show which path holds.
Sources: Annual inflation for October 2026 (released 3 November 2026), with consensus and previous values from the RT economic calendar; Central Bank of Paraguay inflation target of 3.5%. Earlier reading: Paraguay Inflation Rises to 1.7% in September 2026. This is news, not investment advice.
Frequently Asked Questions
What was Paraguay’s inflation rate in October 2026?
Annual inflation was 1.7%, unchanged from September and 0.1 point below the 1.8% forecast. The central bank’s target is 3.5%.
Is Paraguay’s inflation high?
No. At 1.7% it sits 1.8 points below the central bank’s 3.5% target.
What does year-on-year inflation mean?
It compares the average price level now with the level twelve months earlier. It shows how much prices have risen over a full year.
What would change the inflation picture?
A reading above 1.8% would suggest rising price pressure. A reading below 1.7% would confirm further cooling.
More: Paraguay news, every day from The Rio Times.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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