In February 2025, Paraguay’s annual inflation rate rose to 4.3%, up from 3.8% in January. Key contributors included price increases in housing, food, recreation, and education. Consumer prices rose 0.4% month-on-month, after a 1% increase in January.

In February 2025, Paraguay experienced an increase in its annual inflation rate, which rose to 4.3%, up from 3.8% in January. This represents the highest inflation rate observed since August 2024. The rising inflation can be attributed to significant price hikes in various sectors, including housing and utilities, food and non-alcoholic beverages, recreation and culture, education, restaurants and hotels, furniture, and transportation.

Specifically, the inflation rate for housing and utilities increased from 2.08% to 2.16%, while food and non-alcoholic beverages rose to 4.90% from 4.37%. Notable increases were also seen in recreation and culture (5.96%), education (4.70%), and restaurants and hotels (5.26%). Transportation costs significantly increased to 5.49% from 3.60%, while furniture prices rose to 3.15% from 2.99%.

Conversely, the rate of inflation for health services decreased slightly from 3.05% to 2.65%. Furthermore, prices for clothing and footwear remained stable at 2.26%, reflecting a decrease from the previous month’s rate of 2.27%. On a month-to-month basis, consumer prices increased by 0.4% in February, following a larger rise of 1% in January.

The acceleration of Paraguay’s inflation rate to 4.3% in February 2025, the highest since August 2024, highlights ongoing economic pressures, particularly in key sectors like housing, food, and transportation. While some areas, such as health and clothing, showed slower growth or stability, the overall trend indicates significant price increases across various essential goods and services. Monitoring these trends will be vital for understanding the economic landscape in coming months.

Original Source: www.tradingview.com