Paraguay’s annual inflation slowed to 1.5% in August 2026 from 1.6% in July, staying well below the central bank’s 3.5% target. Restaurants and hotels recorded the largest increase at 9.5%, followed by education at 6.0%. Furniture and household goods, healthcare, and housing and utilities each rose 1.8%, 1.7%, and 1.7%, respectively. Food and non-alcoholic beverages fell 0.5%, partly offsetting those increases. Consumer prices were unchanged on a monthly basis in August after declining 0.1% in July.