Paraguay Producer Price Index YoY: January 2026 Data Shows Marked Deceleration
Big-Picture Snapshot
- Drivers this month:
- Food processing: -0.12pp
- Metals: -0.08pp
- Energy: +0.03pp
- Policy pulse: January's 0.2% YoY PPI sits far below Paraguay's central bank inflation target band of 4% ±2pp, underscoring a pronounced cooling in upstream price pressures.
- Market lens: Bond yields dipped on the release, reflecting investor confidence in contained producer inflation. The sharp deceleration from December's 1.2% reading has reinforced expectations of a benign cost environment for manufacturers, with input prices stabilizing after last year's volatility.
Foundational Indicators
- January 2026 PPI YoY: 0.2%
- December 2025: 1.2%
- November 2025: 3.0%
- October 2025: 3.35%
- 12-month average (Feb 2025–Jan 2026): 2.98%
- Peak in last 12 months: 4.6% (August–September 2025)
Producer prices have fallen for seven consecutive months, with the index dropping from 4.2% in June 2025 to the current 0.2%. The last time YoY PPI was this low was prior to the 2024 commodity surge.
Chart Dynamics
Forward Outlook
- Bullish scenario (25–35% probability): PPI rebounds above 1% by mid-2026 if global demand recovers and commodity prices rise.
- Base case (50–60% probability): PPI remains subdued, fluctuating between 0% and 1% as input costs stabilize and domestic demand stays moderate.
- Bearish scenario (10–20% probability): PPI turns negative, signaling deflationary risks if external demand weakens further or export prices fall.
Risks remain balanced: a global commodity rally could lift producer prices, while persistent weakness in export markets or further currency strength would keep PPI near current lows. The central bank is likely to monitor these trends closely, given the sharp divergence from its inflation target.
Closing Thoughts
Paraguay's January 2026 PPI YoY reading of 0.2% underscores a dramatic cooling in producer inflation, with the index now at its lowest point in over a year and well below the central bank's target range. The sustained decline reflects both global and domestic factors, including easing commodity prices and muted industrial demand. With upstream price pressures largely absent, attention will turn to how this trend filters through to consumer prices and broader economic activity in the coming months.
Key Markets Reacting to Producer Price Index YoY
- AAPL — Sensitive to global supply chain costs; lower PPI readings can ease margin pressures for multinationals with Paraguayan suppliers.
- EURUSD — Currency pairs react to inflation differentials; subdued PPI in Paraguay may support the local currency versus majors.
- BTCUSD — Crypto markets often respond to inflation signals; declining producer prices can reduce demand for inflation hedges.
| Year | PPI YoY (%) | AAPL Trend |
|---|---|---|
| 2020 | 1.8 | Stable |
| 2021 | 2.5 | Upward |
| 2022 | 3.1 | Volatile |
| 2023 | 2.7 | Mixed |
| 2024 | 2.9 | Upward |
| 2025 | 4.6 (peak) | Downward |
| 2026 (Jan) | 0.2 | Stable |
Frequently Asked Questions
- What is the Paraguay Producer Price Index YoY for January 2026?
- The Producer Price Index YoY for Paraguay in January 2026 is 0.2%, marking a significant slowdown from previous months.
- Why did Paraguay's PPI YoY drop so sharply this month?
- Key drivers include lower food processing and metals prices, as well as stabilizing energy costs, leading to the lowest PPI YoY since mid-2024.
- How does the Producer Price Index YoY impact markets?
- The PPI YoY influences bond yields, currency movements, and equities with supply chain exposure to Paraguay, as it signals upstream cost pressures.
Updated 2/25/26
This has been drafted with AI assistance and then thoroughly reviewed, refined, and approved by our human editorial team to ensure accuracy, and originality.
- [1] Sigmanomics Economic Database, Paraguay Producer Price Index YoY, accessed 2/25/26.









January's PPI YoY print of 0.2% marks a steep drop from December's 1.2% and is well below the 12-month average of 2.98%. The index has now declined for seven straight months, with the last three readings (November: 3.0%, December: 1.2%, January: 0.2%) showing a rapid loss of momentum. Compared to the August–September peak of 4.6%, producer inflation has nearly vanished.
Such a pronounced deceleration signals a shift in cost dynamics for Paraguayan producers, with input prices stabilizing after last year's highs. The trend aligns with easing global commodity prices and a stronger local currency.