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Paraguay's annual inflation accelerated to the highest level since September 2011 due to costlier food and imported fuels, according to a central bank report published on Wednesday.
The annual inflation rate rose in February for a second-consecutive month to 9.3%, from 7.9% in January.
“Inflation is proving a bit more persistent than what we had expected,” the central bank's director of macroeconomic analysis, Bernardo Rojas, said in a webinar.
The surge in international oil costs following Russia's invasion of Ukraine is proving a headache for fossil fuel importers such as Paraguay. State-run oil company Petropar said Tuesday that it plans to increase prices this week and it might buy fuel directly from other governments to save money. Regionally, countries from Brazil to Chile are also grappling with high inflation.
Read more: Inflation Shock From Ukraine War Threatens Weak Latin Economies
Fuel and food stuffs such as fruits and vegetables represented almost 70% of inflationary pressures last month. Consumer prices rose 1.4% from January.
The central bank, which has increased its benchmark rate 500 basis points since last August in response to rising consumer prices, targets 4% inflation.
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