Paraguay's Consumer Price Index (CPI) grew 1.5% in the month of January of 2022, for a yoy inflation of 7.9%, which surpassed the 6.8% recorded in the last month of 2021. It was also significantly above the same period of the previous year.
The data supplied by Paraguay's Central Bank (BCP) Wednesday showed the increases in food and fuel prices.
Beef accounted for the largest part of the rise in food prices since the drought has affected pastures, which in turn resulted in higher costs for breeders. In this scenario, foods usually used as substitutes for beef -namely sausages and fish- have also gone up due to growing demand. However, chicken and pork went down slightly.
Price increases were also significant in dental care, laboratory tests, X-rays, hospital services and pharmaceutical products, despite which core inflation barely reached 0.6% for a 5.1% yoy after a 4.7% result reported in December of 2021 and way above the 1.9% registered in January last year.
Baked products also recorded a price increase due to a higher cost of inputs, including fats. On the other hand, dairy products, particularly cheese, showed price drops.
The price of fuel at pumps also went back up after the price reduction campaign ended Dec. 31, 2021.