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 6 percent in June — against 1.5 percent a year ago.
The bulk of inflation has been observed in higher fuel prices and public transportation fares. Bus tickets went up by 7.5 percent in June alone, while the liter of gas increased by 56 percent over the past year, despite the government having created a stabilization fund to contain price spikes.
Experts believe that fuel prices will continue to climb, despite recent rosy reports from Petropar, the state-owned oil firm.
“We are facing the worst inflationary scenario in the last two decades. The current crisis in Paraguay is a fuel...
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