MercoPress. South Atlantic News Agency

BCP reports negative inflation for October

With October's results, the cumulative inflation for the year stands at 3.2%, while the year-on-year inflation rate is 4.1%

Paraguay's Central Bank of Paraguay (BCP) announced on Monday that the country registered a deflationary result in October 2025, the second such result this year. The monthly variation in the Consumer Price Index (CPI) was -0.1%.

 The negative inflation rate in October was primarily driven by price decreases in fuels (super gasoline, common and additive diesel), in line with reductions in international crude oil prices; imported durable goods such as cars, trucks, and motorcycles, and some household appliances, due to the appreciation of the Guaraní against the US dollar in recent months.

Although some specific vegetables saw price drops, the overall price of food nationwide remained high for local consumers. While the general year-on-year inflation rate is 4.1%, the food group's annual increase exceeds 10%.

The highest annual increases were seen in beef (24.7%), coffee (22.9%), and vegetables (18%) on average. Beef and its main substitutes, particularly poultry (chicken) and pork, registered strong price increases in October. The rise in poultry prices was attributed to consumers substituting expensive beef with chicken, driving up demand and prices for cuts like breast and thigh.

Notable monthly increases were seen in items like potatoes (24%), cabbage (15%), oranges (7%), and bananas (7%).

Some price decreases were registered within the food group, specifically for dairy products (milk, cheese, eggs), fish, oils, sugar, and some vegetables, attributed to increased production and supply.

Additionally, prices for various services increased, including meals and drinks consumed away from home, prepared takeout food, vehicle maintenance, electrician services, and veterinary services. Health-related costs, such as laboratory analysis and root canals, also rose.

With the October result, the cumulative inflation for the year stands at 3.2%, while the year-on-year inflation rate is 4.1%.