(MENAFN- The Rio Times) Paraguay posted a rare bit of breathing room in September: prices slipped 0.1 percent on the month as cheaper fuel and imported durable goods tugged the consumer basket down. It's a welcome contrast to the 0.2 percent rise a year earlier.

But step back and the picture sharpens: year-to-date inflation is 3.3 percent, above 2.9 percent over the same stretch in 2024, and twelve-month inflation eased to 4.3 percent-down from August's 4.6 percent, but still a touch higher than a year ago.

The story behind the story is where households feel the squeeze. The fuel drop helped, yet everyday services kept getting pricier: eating out and take-away food, electrician and appliance repair work, hairdressing, even financial services.

Food prices climbed too, led by beef and fruit-and-vegetable items, with poultry rising as a substitute. Shoppers also paid more for clothing, cleaning products, and personal care goods. In short, the items people use constantly-services and food-are where inflation is most stubborn.

Policy has stayed steady. The central bank's benchmark rate remains 6 percent, a signal that inflation is within its tolerated range but not yet tame enough to risk looser settings.



That steadiness anchors borrowing costs while policymakers watch whether service and food pressures ebb. Context matters. Paraguay 's economy expanded strongly in the first half of 2025, lending support to jobs and demand.

Solid growth is good news, but it can keep service prices sticky. To improve the quality of inflation tracking, authorities are launching a new household budget survey to update the CPI basket and weights so the index better mirrors how Paraguayans actually spend.

Why readers outside Paraguay should care: this is a snapshot of inflation's new phase across many economies-headline numbers can cool when fuel retreats, but core, people-facing costs linger.

For investors, exporters, and regional neighbors, Paraguay's mix-firm growth , steady rates, and sticky services-signals a cautious, wait-and-see environment rather than a clean turn toward cheaper living.

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