The consumer price index is composed mostly of three components in Paraguay: food (32% of total weight); transports (14.8%), and shelter, household maintenance, and services (8.9%). 7.7% is devoted to furniture and household equipment, 7.3% is devoted to miscellaneous goods and services, and 6.1% is devoted to leisure and culture. Also included are restaurants and hotels (5.5%), clothing (4.9%), health care (4.1%), education (4%), communications (3.4%), and alcoholic beverages and tobacco (1.2%). As of December 2007, the national index has a base value of 100. Pricing and spending habits in Asunción’s metropolitan region, which includes the cities of Asunción, Luque, Fernando de la Mora, Lambare, San Lorenzo, and Capiata and is home to 43.5 percent of the country’s urban population, is measured by the Consumer Price Index (CPI).
A higher than expected figure should be seen as positive (bullish) for the PYG while a lower than expected figure should be seen as negative (bearish) for the PYG.
