FX.co ★ Paraguay Inflation Eases to 1.6%

Paraguay’s annual inflation rate eased to 1.6% in July 2026, down from 2.1% in June, moving further below the central bank’s 3.5% target. The largest price increases were seen in restaurants and hotels (9.7%), followed by education (5.9%), furniture and household goods (2.1%), healthcare (1.9%), and housing and utilities (1.8%). In contrast, transport prices declined by 1.1%, as lower oil prices—supported by easing tensions in the Middle East—helped restrain overall inflation. Core inflation, which excludes the most volatile components, slowed to 1.5% year-on-year from 1.7% in June. On a monthly basis, consumer prices fell by 0.1%, after a 0.3% decrease in the previous month.