Macroeconomic Forecast PARAGUAY

Paraguay's consumer price inflation rose by 9.2% y-o-y in September from 8.8% in August, continuing to pose upside risk to our end-2011 inflation forecast of 8.0%. However, a slowdown of the m-o-m reading—which came in at 0.2% in September, compared to 1.0% in August—and our view that international commodity prices will remain low for the rest of the year, suggest prices could start to come down in Q411.

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