PARAGUAY · PRICES
Key Facts
- —The country Paraguay is a landlocked South American country that sells soybeans and beef.
- —Why it matters Producer prices are an early sign of cost pressure before it reaches shops.
- —Why now The central bank published the September figures on Friday 23 October 2026.
- —What happened Producer prices fell 0.8% in September from a year earlier, after a 1.7% fall in August.
- —What it means for you US investors and buyers see low cost pressure, though one month is not a trend.
- —Still open Whether September’s 0.4% monthly rise continues in October and ends the yearly decline.
- —Power Index Paraguay ranks 10th of 14 in The Rio Times Latin America Power Index, with 36.0 points (October 2026 edition).
Paraguay producer prices fell 0.8% in September from a year earlier, the central bank said on Friday 23 October 2026, a smaller drop than the 1.7% fall in August. It was the eighth month in a row with a yearly decline, based on the bank’s own table of 2026 readings.
For US readers the figure matters because Paraguay sells soybeans and beef abroad, so its producer prices show what farms and factories charge before costs reach buyers. It also helps investors in Paraguayan companies and bonds judge whether low inflation can last.
The central bank held its policy rate at 5.50% the same day, as we covered in Paraguay Policy Rate Holds at 5.50%. The producer price report came out later that afternoon.
In plain English
- —Producer price index (IPP) The central bank’s gauge of what producers and importers charge before goods reach shops.
- —Year on year A comparison with the same month a year earlier.
- —Cumulative The change since 1 January.
- —Home-made and imported The index splits prices into goods made in Paraguay and goods brought in from abroad.
- —BCP Banco Central del Paraguay, the country’s central bank.
How Paraguay Producer Prices Moved in September
The central bank’s producer price index, called the IPP, rose 0.4% in September from August. Prices of goods made in Paraguay rose 0.2%, while prices of imported goods rose 0.7%.
Over the first nine months of 2026 the index is down 0.3%. Home-made goods are down 0.9% over that period, while imported goods are up 0.8%.
Compared with September 2025, the index is down 0.8%, with home-made goods down 0.5% and imported goods down 1.3%. In August the yearly reading was minus 1.7% overall, minus 0.8% for home-made goods and minus 3.3% for imported goods, according to La Nación’s account of the bank’s August report.
Our arithmetic from the published figures shows the overall yearly decline narrowed by 0.9 points in one month. The decline for imported goods narrowed by 2.0 points, the biggest shift of the three groups.
The bank posted the figures on its official account on Friday 23 October 2026, with a monthly table and a chart that runs back to September 2020. Both graphics carry the label of its economic research department.
Why the Yearly Decline Shrank
The change is largely arithmetic, because producer prices fell 0.5% in September 2025 and rose 0.4% in September 2026. That swing of 0.9 points matches the move in the yearly rate from minus 1.7% to minus 0.8%.
September’s 0.4% monthly rise is the biggest since March, when prices rose 0.9%. Between April and August the monthly moves ranged from minus 0.7% to plus 0.1%.
Economists call this a base effect, meaning the yearly rate changes because last year’s number drops out of the comparison. It does not by itself show that prices are now climbing.
Prices of imported goods and home-made goods were both unchanged in August, according to La Nación. September therefore followed a flat month with gains in both groups.
Imported goods are up 0.8% since January, against 0.1% at the end of August. The sources reviewed give no breakdown of the September rise by product.
In August, according to La Nación, vegetables, tubers and legumes fell 4.4% while cattle rose 1.4% and poultry 0.9%. Those August moves show how a few farm products can swing the index in a single month.
The 2026 Run of Yearly Readings
The bank’s table shows the yearly rate has been below zero every month since February 2026. January was the only month this year above zero, at plus 0.2%.
Yearly change in producer prices, 2026
- —January +0.2%
- —February −0.9%
- —March −0.7%
- —April −1.0%
- —May −1.5%
- —June −1.8%
- —July −1.5%
- —August −1.7%
- —September −0.8%
The yearly rate peaked at 5.1% in April 2025 and ended that year at 1.2%, according to the same table. It then turned negative in February 2026 and has stayed there.
The October 2025 monthly change was plus 0.3%, so the October 2026 reading will be compared with that base. The same table shows November 2025 at 0.0% and December 2025 at minus 0.7%.
The low point was minus 1.8% in June, and September’s minus 0.8% is the mildest reading since March. A year earlier the yearly rate stood at plus 3.3%, so prices swung from rising to falling in twelve months.
Producer Prices Versus Shop Prices
Consumer prices rose 0.1% in September and 1.7% over twelve months, according to the bank’s inflation report of 2 October as covered by La Nación. That is well below the 3.5% inflation target that the bank’s policy committee cites.
Fuel was the biggest yearly mover in the consumer basket, up 18.9%, while cars were 14.3% cheaper because of the exchange rate, according to La Nación’s account of that report. Eating out rose 10.2% over the year, so shop and service prices and producer prices can tell different stories.
Set side by side, shop prices are rising 1.7% a year while producer prices are down 0.8%, a gap of 2.5 points that is our own arithmetic. The two indices measure different baskets, so they are not expected to move together month by month.
The policy rate began 2026 at 6.00% and fell to 5.75% in January and 5.50% in February, where it has stayed. The sources reviewed do not say whether weak producer prices would help a future cut.
What It Means for You
US investors in Paraguayan assets can read the report as a sign of low cost pressure, since Paraguay producer prices are below last year’s level. One month of data cannot show a trend, and the 0.4% rise in September is a reminder that the direction can change quickly.
Buyers of Paraguayan beef, soy and other goods face no sign of a jump in Paraguayan producer prices in this reading. For background on who drives the economy, see our guides Who Runs Paraguay’s Economy, the Key Players in 2026 and Paraguay Geopolitics Explained 2026.
Businesses that import into Paraguay saw imported-goods prices rise 0.7% in September, though they are still 1.3% lower than a year ago. The index is a gauge of Paraguayan producer prices, not a guide to what world buyers pay for soybeans or beef.
Visitors and residents feel shop prices, which rose 1.7% in the year to September. Our Asunción expat city guide and Best Places to Live in Paraguay for Expats 2026, Ranked cover day-to-day life, and Paraguay Politics Explained, Who Holds Power in 2026 covers who sets policy.
What Is Not Known
The central bank’s website was not reachable from our desk, so the figures come from the bank’s official account post of 23 October 2026 and the three graphics attached to it. We checked the August readings against La Nación’s coverage of the bank’s August report.
The yearly splits of minus 0.5% for home-made goods and minus 1.3% for imported goods are the only breakdown in the graphics we reviewed. It is not clear how much of the 0.7% monthly rise in imported goods came from the exchange rate, world prices or both.
The bank has not said, in the material reviewed, whether the producer price data will feed into its next rate decision. We found no confirmed analyst forecast for the reading.
A monthly rise of 0.4% is one data point. The October report will show whether it continues.
Frequently Asked Questions
What did Paraguay’s central bank report for producer prices in September?
The producer price index rose 0.4% in September from August and was down 0.8% from a year earlier. In August the yearly reading was minus 1.7%.
Why did Paraguay producer prices fall less in September?
Mostly arithmetic, because prices fell 0.5% in September 2025 and rose 0.4% in September 2026. That swing of 0.9 points matches the move from minus 1.7% to minus 0.8%.
What is the producer price index?
It is the central bank’s gauge of what producers and importers charge before goods reach shops. It covers both home-made and imported products.
Is inflation low in Paraguay?
Consumer prices rose 1.7% in the year to September, below the bank’s 3.5% target. Producer prices were down 0.8% over the same period.
What does it mean for US readers?
It shows low cost pressure in a South American exporter of soybeans and beef, which matters to investors and buyers. One month of data does not prove a trend.
Sources: Banco Central del Paraguay, official account, producer price index for September 2026, 23 October 2026; La Nación, 25 September 2026; La Nación, 2 October 2026; La Nación, 22 September 2026.
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