It has been rising for three months since it rose to 3.6% in March compared to 2.9% in February.

The Consumer Price Index (CPI) of Paraguay has risen four tenths in May compared to the previous month, reaching 4.4% year-on-year, which is the highest figure in the last twelve months (such a high level was not seen since May of the previous year, when inflation was 5.2% year-on-year).

Specifically, inflation has been rising for three months in Paraguay, since it rose to 3.6% in March compared to 2.9% in February. Until April of this year, when it reached 4%, the price index had been within the target range for nine months.

In monthly terms, as disclosed this Tuesday by the Central Bank of Paraguay (BCP), inflation has been 0.4, four tenths less than in April. This is the second lowest level so far this year, only after the 0% recorded in February. The accumulated rate is now 3.2%.

In year-on-year terms, food prices remain at high rates, and fuels remain in negative territory but at lower rates. The greatest impact on interannual inflation in May was observed mainly in fruit and vegetable and food items, followed by services.

In this context, it is worth noting that the Central Bank of Paraguay decided in its last monetary policy meeting, held on May 21, to maintain interest rates at 6% in order to guarantee compliance with the 4% goal in the monetary policy horizon.