BCP reveals price gap with Foz and Clorinda

A survey conducted by technicians from the Central Bank of Paraguay (BCP), originally published by the newspaper ABC Color, revealed that consumers continue to seek commerce in border cities such as Foz do Iguaçu (Brazil) and Clorinda (Argentina) due to the accumulated rise in food prices in the Paraguayan market over the last three years.

Data from the Central Bank of Paraguay

Although general inflation recorded 1.7% in the 12-month accumulated period up to September, the food sector has accumulated an increase of about 30% over the triennium, which impacts the population's purchasing power and increases the search for alternatives in border regions. According to the BCP, the differences vary according to the neighboring country:

• Foz do Iguaçu (Brazil): Products cost an average of 18.7% less than in Paraguay, with highlights for rice (up to 40% cheaper), soybean oil (44%), and sugar (39%).
• Clorinda (Argentina): It presents an average difference of 11.4% less in relation to the Paraguayan market, with highlights for flours, pastas (36.3%), and oils (34%).
• Legal limits: The BCP and customs authorities remind that the quota of up to US$ 300 per month per person by land for purchases in Foz do Iguaçu is in effect, in addition to DNIT regulations for border traffic with Clorinda.

Impact for those living or doing business in Paraguay

For those residing in Paraguay, price fluctuation and the attractiveness of neighboring cities influence consumer behavior and local retail, demanding redoubled attention from merchants and investors in the supermarket and consumer goods sector regarding price competitiveness and customs controls at the borders.

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