What is the purpose of a quarterly barometer? To avoid surprises. The cost of living in Paraguay is not fixed: it changes with local inflation, the exchange rate, and seasonal variations in food prices. This barometer tracks the four expense categories that impact your budget the most: housing, food, transport, and the EUR/PYG exchange rate. It is updated every three months, cross-referencing official data (Central Bank of Paraguay, DGEEC) with real estate listings (Clasipar, InfoCasas) and supermarket price surveys. The goal is not academic precision. It is to give you an honest view of trends so you can adjust your budget without surprises. Why is this important? Because most expats underestimate their budget by 20 to 30% in the first year. Not from a calculation error, but because they based their numbers on figures that were 12 or 18 months old. This barometer ensures you always have current quarter figures, not last year's. If you want real-time numbers, use our cost of living calculator and our exchange rate widget. And if you have newer data than shown here, share it: this barometer improves with community contributions.
Price changes: Q1 to Q3 2026
| Category | |||
|---|---|---|---|
| Rent 1-room (Asunción) | 800,000 - 1,400,000 Gs | 800,000 - 1,400,000 Gs | Stable |
| Rent 1-room (Encarnación) | 500,000 - 900,000 Gs | 500,000 - 900,000 Gs | Stable |
| Rent 1-room (Ciudad del Este) | 600,000 - 1,000,000 Gs | 600,000 - 1,000,000 Gs | Stable |
| Food basket (1 person/month) | 400,000 - 700,000 Gs | 420,000 - 730,000 Gs | Up ~4% |
| Gasoline (liter, super 95) | 7,800 Gs | 8,100 Gs | Up ~4% |
| EUR/PYG exchange rate | ~ 8,000 | ~ 7,800 | Down ~2.5% |
| General inflation (CPI) | 3.2% (annual moving) | 3.6% (annual moving) | Up 0.4 pt |
Analysis: Rents remained stable across all three cities in the first half of 2026. The Paraguayan rental market does not have the volatility seen in other Latin American capitals (Buenos Aires, São Paulo). Food increased by 4%, in line with general inflation (3.6% annual moving according to the Central Bank of Paraguay, June 2026). The exchange rate dropped by 2.5%. The euro weakened against the guaraní, making life slightly more expensive for expats paid in euros. Overall, the cost of living in euros has increased by about 3 to 4% since January 2026.
What these numbers mean for your budget
Let us take a concrete example. In January 2026, a single expat living comfortably in Asunción spent about 7 million Gs per month, or 875 (at the rate of 8,000 Gs/). In July 2026, with the same quality of life, they spend about 7.2 million Gs per month, or 925 (at the rate of 7,800 Gs/). The difference (50 more per month) is modest but real. Over a year, this represents 600 less purchasing power.
What could happen by the end of 2026: the Central Bank of Paraguay forecasts 4% inflation for 2026 (source: Informe de Política Monetaria, June 2026). If this forecast holds, expect moderate increases in food and transport prices by December. The exchange rate, however, is unpredictable. It depends as much on European monetary policy as on the stability of the guaraní. A good practice: budget 5% more than the calculator figure to absorb fluctuations.
Why follow Paraguayan inflation if you are paid in euros?
The answer is counterintuitive. Even if your income is in euros, you still feel Paraguayan inflation. Because you pay your rent, groceries, and gasoline in guaraníes. The only thing that protects you is a favorable exchange rate. Right now, the exchange rate works against us (the euro is dropping), which amplifies local inflation instead of offsetting it. The worst scenario for an expat paid in euros: high local inflation plus a weak euro. We are not there yet, but it is one more reason to follow this barometer each quarter.
How to interpret the numbers in this barometer. Do not focus on a single indicator. What matters is the overall trend. If food inflation rises by 4% but your rent is stable and the exchange rate improves, your purchasing power may stay unchanged or even increase. Conversely, moderate inflation combined with a falling euro can significantly raise your daily living costs. This is what happened in the first half of 2026: inflation remained moderate (+3.6% annual moving) but the euro lost 2.5%, canceling some of the benefit of stable rents.
About these figures. The data published here comes from official Paraguayan sources (BCP, DGEEC, Petropar) and listing platforms (Clasipar, InfoCasas). They are cross-checked, verified, and updated each quarter. If you spot an error or inconsistency, please report it. This barometer is a community tool: it improves with feedback. Transparency on sources is the only guarantee of credibility.
Last updated:
Sources
- BCP: Informe de Inflación (June 2026) (2026)
- BCP: Informe de Política Monetaria (June 2026) (2026)
- DGEEC: Canasta Básica de Alimentos (June 2026) (2026)
- Petropar: Precios de Combustibles (July 2026) (2026)
- Clasipar: Inmuebles en Alquiler (July 2026) (2026)
- Numbeo: Cost of Living in Paraguay (May 2026) (2026)
- Expatistan: Cost of Living in Paraguay (June 2026) (2026)
My method
This page is written from France, sourced as carefully as possible, but I can be wrong or miss on-the-ground detail. A price that changed, outdated info, a photo to share? Every correction is credited if you want.
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