The Central Bank of Paraguay (BCP in Spanish) published the documentation about the inflation for the month of July. The percentage that was reached in that month was equal to -0,3%.
Authorities explained that the reason is to be found in the price reduction of foodstuffs, especially vegetables, fruit, beef and veal.
According to what was communicated by Central Bank, the accumulated inflation of the year corresponds to 1,6%, while the year-to-year inflation stood at 4%. In figures, we can calculate it on 0,5 percentage points less than the first seven month of 2017.
The below inflation excludes fruit, vegetables, price-regulated services and fuel. In July this figure stood at 0%.
Experts justified this figure based on price reduction of the products more present in a basic shopping. Among them, vegetables and yams with a falling in price equal to 9,8%.
For their part beef and veal were found to be 10% more convenient than the previous month. The generated figure relates to an increase in processing and to a growth in the offer in the internal market.
Another fallen figure concerns dried fruit, the position of which is 5,5% below, if compared to July.
However, meal and baked goods have risen because of adverse weather conditions, which could affect the harvest. Furthermore, this condition could affect conspicuously the cereal production in general.
In July, fuel had a slightly decrease and this fact rather responds to a price stability.
About the dairy sector, it was influenced during winter time. In this way, the offer was limited and this fact contributed to a rise in prices.
Additional figures
Paraguay closed the year 2017 with an inflation equal to 4%. That is: it exceeds the 3%, that was registered in 2016. It should be noted that even though inflation is higher than the target set by the Central Bank of Paraguay, however for this year we are talking of absolutely positive figures.
BCP calculated that by mid December the Country economy will have risen of 4,5% during 2018. The reason why this calculation was made is to retrieve agriculture and non- traditional sectors.
Prospects indicate that this year the improvement of the economy will be accompanied by an inflation tax equal to 4%.
The Central Bank of Paraguay made a growth project in relation to the current year and estimated that GDP is expected to increase of 4,7%. Previously, it was 0,2%.
This increase was attributed to the dynamism they kept in several subsidiary areas of the nation and, among them, the water, the electricity and the production sectors are especially relevant.
Furthermore, in the report it is considered that even tertiary sector had a positive impact.
Trade and government are some of the services included in this planned growth.
BCP provides that primary sector will have a year-to-year tax equal to 1,7%.
As regards the agricultural production of soy and maize, it is estimated that it will be greater than it was a year ago. The Ministry of Agriculture and Livestock has previously expressed the reasons why during 2018 there has been a continued expansion in the agricultural sector. The Central Bank of Paraguay has projected that this increase will be equal to 1,8% for investments that were made in this sector.
It should be noted that in the document there has been talk of the increase of beef percentage. This figure shall be 15% over the next two or three years.
In its report the Central Bank of Paraguay considered that the Country is located in one of the most dynamic areas. In this way all exports and imports will maintain with a growth rate equal to 5% or 6%, respectively.
About taxes, Authorities explained that the rate of change will be similar to that registered in 2017. This means that it is possible to establish a 5% for the next period.
As regards subsectors, like, for instance general Government and trade, they should increase. And for each one, figures are estimated between 6 to 6,3%.
In turn, with 6% reference has been made to the growth of secondary sector, within which you can find among other products, meat and chemicals. In the meantime, services would increase 4% year-to-year.
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