Latin America

Inflation is a threat to Colorado Party dominance in Paraguay

Like the rest of the region, Paraguay has not escaped soaring inflation this year. This could be politically costly for the ruling Colorado Party

Paraguay 12-month inflation rate rose to 11.5 percent in June from 11.4 percent in the previous month, according to the country's central bank. Photo: Andre M. Chang/ZUMA Press Wire
Paraguay’s 12-month inflation rate rose to 11.5 percent in June from 11.4 percent in the previous month, according to the country’s central bank. Photo: Andre M. Chang/ZUMA Press Wire

The Colorado Party has long asserted itself as the leading political force in Paraguay. Since the late 1940s, it has ruled the country almost uninterruptedly, including the three-decade dictatorship of Alfredo Stroessner, with just a brief (and tumultuous) interregnum between 2008 and 2013. 

Now, as President Mario Abdo Benítez approaches the end of his term next year, the party faces an opponent arguably more dangerous than any other political group: inflation.

According to the Central Bank, consumer prices have risen by 11.5 percent over the past 12 months, the highest since early 2008. The year-to-date rate reached...

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