Paraguay continues to impress with an exceptionally low inflation rate, making it one of the most economically stable countries in Latin America. According to the Central Bank of Paraguay (BCP), inflation in August 2025 was only 0.1%, compared to 0.4% in July. This continues Paraguay’s trend of near-zero inflation, with five consecutive months showing virtually no price increases.
Monthly and Yearly Inflation in Detail
| Month 2025 | Monthly Inflation |
| January | 0.0% |
| February | 0.1% |
| March | 0.2% |
| April | 0.0% |
| May | 0.0% |
| June | 0.3% |
| July | 0.4% |
| August | 0.1% |
Cumulative inflation since the beginning of 2025: 3.4%
Positive Trends in Prices and Currency
Imported goods and durable consumer products: Electronics, sports items, perfumes, and vehicles have seen falling prices, supported by the strengthening of the Paraguayan Guaraní against the US Dollar.
Fuel prices: Down 3.1%, reducing transportation costs for households and businesses.
Services: Price increases are moderate, particularly in dining out, healthcare, and domestic help.
Overall, price-dampening factors dominate, creating an environment of low inflation attractive to both investors and expatriates.
Food Prices – Moderate Increases
Some food items have risen in price, but these are offset by other falling costs:
Eggs: +8.1%
Fresh fruit: +7.1%
Poultry: +2.8%
Coffee: +2.5%
Beef: +0.6%
These increases are largely seasonal and reflect supply and demand fluctuations, while Paraguay’s overall purchasing power remains stable.
Forecast and Outlook
The Central Bank of Paraguay expects a 2025 annual inflation of around 3.5%, which is very moderate given the low monthly rates recorded so far.
The combination of stable currency, controlled energy and import prices, and moderate food price increases makes Paraguay an attractive location.
Conclusion
Paraguay currently shows an exceptionally stable price level in Latin America:
Monthly inflation has been near-zero for several consecutive months
Cumulative inflation is moderate at 3.4%
Year-on-year inflation stands at 4.6%
Price reductions in imported goods and energy
Moderate increases in food and services
These figures confirm that Paraguay offers a secure economic environment and preserves stable purchasing power.