Paraguay experienced an annual inflation rate of 4.6% in August 2025, a rise from 4.3% in July. This increase was primarily due to the surging costs of food, which jumped by 8.8%, and services, which rose by 4.4%. Significant contributions to inflation were also noted in the sectors of recreation and culture, education, and the hospitality industry, with respective increases of 5.8%, 4.9%, and 7%. These inflationary trends were somewhat mitigated by reductions in fuel prices, which decreased by 4.4%, and transportation costs, which fell by 1.1%. On a month-to-month comparison, inflation slightly moderated to 0.1% from 0.4% in July.