Inflation expectations for the monetary policy horizon fell from 4.5% in October to 4.3% in November, the Central Bank of Paraguay (BCP) reported in its latest report. In this context, and after its last meeting, the Monetary Policy Committee unanimously decided to keep the interest rate at 8.50% annually, just like last month. They indicated that the year-on-year inflation trajectory was taken into consideration, which still shows moderation with respect to the peaks observed in the second quarter.
He pointed out that at the local level, the monthly inflation rate reached 0.4% in October as a result of the rise in food prices and other goods and services, which was offset by the negative impact of the energy sector. However, in November, there was a new increase in domestic fuel prices that could be reflected in inflation for the month; However, it would be a good time given that the increase has been moderate in recent months.
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Meanwhile, the estimator of business figures (ECN) rose 1.8% year-on-year through increases in auto, apparel and pharmaceutical chemicals items. On the other hand, fuel and supermarket sales decreased compared to the same month in the previous year. The Consumer Confidence Index (ICC) rose to 54.9 in October compared to 48.3 in September.
Regional indices related to short-term activity for various countries registered positive inter-annual rates in September. For the coming year, the economic outlook has been revised downward and in terms of prices, most of the countries analyzed in the region showed a slowdown in inflation year-on-year in October. It should be noted that although the CPM has maintained interest rate stability, it will continue to monitor the domestic and international environment, as well as its repercussions on inflation prospects.
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