prices rose again in April, which generated an impact on the pocket, especially in food, imported durable goods and some services. This rise in the inflation de April It was partially compensated by a decrease in fuels, according to the Central Bank of Paraguay (BCP).
According to official data, the goods that are part of the basic basket recorded a 0.5% increase in the month. It is a lower figure than the same month last year, when inflation was 1.1%. However, so far this year, prices accumulate a 3.9%rise, a little higher than the same period of 2024 (3.7%).
Year -on -year inflation
The interannual inflation, that is, the variation of the last 12 months, was 4.3%, below 4.9% recorded in March.
In the case of services and rental payment, the increase was slight: just 0.1% in April. Even so, the accumulated of the year reached 1.5%, somewhat larger than last year.
during the presentation of this April inflation data, the chief economist of the BCP, César Yunis, explained that the most notorious increases were given in foods such as meat and tomato, the latter with a rise of 20%. Some seasonal factors also influenced, such as demand during Holy Week.
Asked whether this behavior can lead to the BCP to modify its monetary policy, that is, upload or lower the reference interest rate, Yunis said that the economic context, prices and expectations of the agents and based on the risks, the monetary policy committee make decisions make decisions, assured that they monitor both the local and external scenario.
Price increase and exchange rate
One of the points that most caught attention was to increase prices in imported durable products, such as appliances and vehicles. Yunis explained that this is due, to a large extent, to the evolution of the exchange rate.
Although the dollar stabilized in recent weeks, it did it at higher levels than in previous months, which caused adjustments in the prices of these products.
On SAE inflation that excludes food and energy and allows us to see the substance of prices, the economist acknowledged that it is still increasing, but clarified that it is a conjunctural situation.
“The rise in products such as tomato and meat responds to specific factors, and we hope that prices are normal in the coming months,” he said.
When consulted, if there is a core inflation level that garments in the BCP, Yunis replied that there is no specific number: the important thing is the trajectory.
“While expectations are maintained within the target range, there is no reason to change the course. But if that changes, the committee will evaluate what measures to take,” he said.
The BCP slightly adjusted its inflation projection for this 2025, from 3.7% to 3.8%. However, he is confident that several of the factors that pushed up prices in April will be reversed in the second half of the year.
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