upward trend of prices on items imported聽into Paraguay continues with no end in sight.
Inflation on imports was 9.3 percent higher in 2021 than it was in the same recorded period in 2020, making it the highest level recorded since 2005, according to a study by the聽Central Bank of Paraguay.
“Just forget about trying to buy any [imported] fruits or vegetables,” Ramona Benitez told Pezou.
Benitez is a resident of Encarnaci贸n, Paraguay, a聽city located on the Paran谩 River.
She said the city has been running short on things such as fruits and vegetables for months.
“It’s an ugly situation made even harder by unemployment,” Benitez said.
Like many, Benitez lost her job as a teacher during the聽Chinese Communist Party (CCP) virus聽lockdowns in 2020. Unemployment in Paraguay reached聽7.9 percent聽in the first quarter of 2020 and continued to increase in the聽first quarter聽of 2021.
In Asunci贸n, resident Silva Torres told Pezou, “Fuel [gas] prices are through the roof.”
Torres stated that you can’t even buy fish in the nation’s capital these days, due to critical shortages driving inflation.
“ beef has also gotten very expensive,” Torres said.
price of gas in the country, which imports all of its聽petroleum-derived fuels, has gone up聽four times聽in 2021 due to global demand as economies continue reactivating.
Torres says prolonged drought conditions聽in the region are affecting the ability of container ships to travel on riverways, bringing imports and exports to a near standstill.
Drought has also hit the local聽fishing industry hard, affecting small towns that rely on the maritime industry for income along the Paraguay and Paran谩 rivers.
When asked if the inflation was noticeable in supermarkets, Torres responded, “Oh my, yes! We very much feel it in the markets.”
Paraguay and Paran谩 rivers are of vital聽importance聽to trade and commerce between the “southern cone” nations of Paraguay, Brazil, Bolivia, and Argentina, all of which are participating members of the South American trade bloc Mercado Com煤n del Sur.
trend of diminished water levels in the rivers began three years ago and reached record lows聽in 2021.
Transport for large vessels in these conditions has become difficult鈥攐r impossible鈥攊n some parts.
Hydrology engineer Jos茅 Luis 脕vila聽pointed out聽that the historically low water levels are atypical for this time of year, with no significant rainfall recorded near the Paraguay or Paran谩 rivers. Consequently, they have a depth of only 11 inches in some places that normally see a lot of shipping traffic.
economic consulting group MENTU聽stated聽that the high costs of sea freight, combined with the rise in international fuel prices and delayed transit, are the primary factors driving the nation’s historically high inflation.
“This could limit the availability of imported goods in demand at the end of year festivities, which are times of greatest consumption,” the organization聽stated in the Financial Pulse section of their website.
Pezou : Paraguay Suffering as Inflation Pushes Cost of Imports to 16-Year High