The president of the Paraguay Importers Center (CIP), Iván Dumot, stated that the perception that the fall of the dollar is not reflected in prices is mistaken. According to him, although about 25% of products sold in supermarkets are imported, this proportion drops when analyzing the basic consumption of lower-income families, which depends mostly on domestic items.
Dumot explained that the relationship between exchange rates and prices on shelves is not automatic. Sectors such as fuels react more quickly, while mass consumer products behave differently due to competition between brands and exchange rate volatility. He cited data from the Consumer Price Index (CPI) to support that there have already been reductions: “Last year, the dollar rose about 10% and imported products increased about 6%. This year, that same index already shows a reduction of approximately 7% up to March and April,” he said in an interview.
The business leader highlighted that companies avoid fully passing on dollar increases to avoid losing sales volume, and that the same criterion applies when the US currency falls. Essential foods such as rice, pasta, sugar, bread, fruits, vegetables, and meat are largely locally produced, so their prices respond to other factors, not directly to dollar fluctuations.
Dumot also stated that much of the benefit of the falling dollar was channeled through promotions and discounts in supermarkets. According to CIP data, in the first quarter of the year there were more days with offers than without, with discounts between 20% and 50% in some cases. He added that the government is promoting a change in the commercial system, aiming to reduce weekend promotions and move toward a model of permanent low prices. The Ministry of Industry and Commerce works with importers and supermarkets on a list of more than 250 imported products to keep costs reduced throughout the month, a scheme already implemented in about 75% of stores since last month.