Paraguay’s annual inflation rate eased to 1.5% in August 2026 from 1.6% in July, remaining well below the central bank’s 3.5% target. The sharpest price increases were seen in restaurants and hotels (9.5%), education (6.0%), furniture and household goods (1.8%), healthcare (1.7%), and housing and utilities (1.7%). These rises were partially offset by a 0.5% decline in food and non-alcoholic beverages. On a monthly basis, consumer prices were flat in August, following a 0.1% decrease in July.