Paraguay's Consumer Price Index (CPI) grew 0.7% this month, which represented a setback from 0.3% in the same month last year. Nevertheless, Asunción confirmed closing 2024 with a 3.8% inflation, barely over 2023's 3.7%, according to the Central Bank (BCP), and therefore within the target range of 4%, it was explained Monday. On a brighter note, core inflation stood at 0.3% in December for a yearly variation of 3.4%, which meant progress from the 3.6% registered in 2023.
December showed a higher level of adjustment than in the previous seven months. Price increases were driven mainly by food and services. But drops in fuels and some durable goods resulted in a balanced outcome. Food price increases were detected for the fourth month in a row, particularly in different beef cuts as well as in substitute products such as poultry, pork, and sausages. Other foods posting increases were bakery products, pasta, flour, oils, salt, spices, sugar, sweeteners, ice cream, and candies, among others.
Upward twitches were also reported in certain services such as tourist packages abroad, airline tickets, recreational activities, personal care services, and bars and restaurants. Healthcare services also showed a rise in pediatric consultations. Other goods experiencing price increases included alcoholic beverages, household cleaning items, personal care goods, and pharmaceutical products, among others. On the other hand, fuels and automobiles posted slight drops.
For the near future, the BCP aims to reach a ceiling of 3.5% by 2026.
The BCP also published Monday a list of credit card rate limits for next month: 15.91% for credit cards, which represented a reduction from 16.93% at the beginning of 2024. For foreign currency cards, the year-on-year limit will stand at 11.22%.
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