Paraguay’s Annual Inflation Remains Steady Despite a Busy Year
As the year comes to a close, Paraguay’s Central Bank (BCP) reported that the country’s Consumer Price Index (CPI) rose by 0.7% this month. This increase, while higher than the same period last year, marked a steady inflation rate, with the year ending at 3.8%, just above 2023’s 3.7%. Despite the slight uptick, Paraguay remained within the desirable range of 4%, as outlined by the BCP’s monetary targets.
Key Highlights:
- Core inflation for December stood at 0.3%, showing a positive trend with a yearly variation of 3.4%, a decrease from the 3.6% recorded in 2023.
- Price adjustments in December were primarily driven by food and services, with noticeable increases in various food items like beef cuts, poultry, pork, sausages, bakery products, and more.
- Services such as tourist packages abroad, airline tickets, recreational activities, and healthcare saw upward price movements, whereas fuels and automobiles experienced slight decreases.
- The BCP aims to achieve a 3.5% inflation rate by 2026, setting a clear target for the country’s economic stability.
Looking Ahead:
As Paraguay moves forward into the new year, the BCP released updated credit card rate limits for January. Credit card rates saw a reduction from 16.93% at the beginning of 2024 to 15.91%, indicating a positive shift towards more favorable borrowing conditions. Additionally, the yearly limit for foreign currency cards was set at 11.22%, providing further insight into the country’s financial landscape.
In conclusion, Paraguay’s economic performance in 2024 reflected resilience and stability, despite the challenges posed by the global economic climate. With a clear goal set by the BCP for future inflation rates and measures in place to support consumer spending, Paraguay is poised for continued growth and development in the coming years.
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