Economic outlooks show varying inflation and growth trends in Germany and Paraguay

Economic reports from August 2026 highlight varying outlooks for inflation and growth in different regions. In Germany, Statec reports that food inflation has slowed to 1.3 percent as of July 2026, down from 2.8 percent in January. This deceleration is attributed to reduced price pressure on meat and stabilizing coffee prices due to expected good harvests in Brazil. However, experts warn of potential price increases in autumn and winter driven by droughts, heatwaves affecting European harvests, low water levels in major rivers like the Rhine and Danube increasing logistics costs, and the El Niño effect.

In Paraguay, economic expectations remain optimistic. Survey data indicates a year-end inflation expectation of 3.3 percent for 2026, with median inflation projections remaining steady at 3.5 percent for 2027. The Guaraní is expected to remain stable against the US dollar, with year-end 2026 estimates at 6,150 ₲/USD. Furthermore, GDP growth is projected at 4.3 percent by the end of 2026 and 4.0 percent for 2027, while the key interest rate is expected to hold at 5.50 percent through late 2026.