Macroeconomic Forecast Paraguay

BMI View: Paraguay's consumer price index came in at 4.9% y-o-y in December, just below the 5.0% level targeted by the central bank. While the December reading surprised to the downside, we believe inflationary pressures might pick up in 2012, as the central bank enters a new cycle of monetary easing to shield the domestic economy from a recession in the Eurozone. For the time being, however, we are happy to maintain our 4.5% inflation forecast for end-2012.

To read the full article, please choose one of the following options: