Paraguay, the second-best country in inflation management in LatAm
In communication with La Nación Media, Carlos Fernández Valdovinos, Ph.D. in economics and former president of the Central Bank of Paraguay (BCP), stated that in Paraguay the inter-annual inflation rate reached 5.3%, which means that it is decreasing compared to the previous year.
Despite this, he indicated that inflation at the margin, that is, in the last 3 or 4 months, is still quite high, so decisions to be taken from now on have to be careful.
However, even though the levels are still high, Paraguay has one of the best inflation management systems in the region, resulting in this reduction.
SUCCESSFUL CONVERGENCE
Fernández Valdovinos indicated that Brazil was the fastest to achieve this convergence.
Still, it was also the first to implement adjustments to the monetary policy interest rates.
It showed more aggressiveness at the time of the increases compared to the other countries in the region.
“After Brazil, Paraguay was the most successful in terms of inflation convergence.”
“Chile started very late again the reversion of inflation, Colombia continues to rise or stabilize at a high level of two digits, and Peru did not rise to two digits, but stabilized, let’s say, around 8%, then, looking at all these results I think Paraguay is among those with the best performance in Latin America”, said the specialist.
Inflation in April in Paraguay was 0.4 %, lower than the 1.5 % observed in the same month of the previous year, accumulating in the first four-month period at a rate of 2.5 %, below the 5.3 % verified in the same period of 2022.
The Central Bank of Paraguay (BCP) indicated that food price increases explain the month’s result.
With information from La Nación
Key Facts
— Deep Dive
— For the complete picture, read our in-depth guide: Paraguay: Washington's Most Valued Ally in Latin America
More: Paraguay news in English, every day from The Rio Times.
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error