Paraguay’s annual inflation rate eased to 2.3% year-on-year in February 2026, down from 2.7% in January, reaching its lowest level since 2020. The deceleration was mainly due to a steeper decline in transport costs (-9.35% vs. -7.14%), alongside slower price increases in several categories: food (6.2% vs. 6.7%), housing and utilities (2.1% vs. 2.2%), furnishings and household equipment (2.1% vs. 2.3%), restaurants and hotels (9.3% vs. 9.9%), and health (1.8% vs. 1.9%).
By contrast, price growth picked up for clothing and footwear (1.8% vs. 1.7%), education (6.0% vs. 5.0%), communication (2.6% vs. 2.5%), and alcoholic beverages and tobacco (2.0% vs. 1.9%). Inflation in recreation and culture held at 3.2%. Core inflation also edged lower, dropping to 2.6% in February from 3.1% in January.
On a monthly basis, consumer prices were flat, following a 0.6% increase in the previous month.
