Making real sales projections, segmenting prices and designing savings options are some of the strategies that companies can use to protect their profitability in contexts of inflation and recession.
Ariel Baños, price management specialist and founder of Fijciondeprecios.com, details techniques that could help companies avoid negative effects on their finances, when faced with scenarios of rising prices and low dynamism in economic activity.
After the year-on-year variation of the CPI in May of this year was only 1.3%, in June the inflationary rhythm in the country became low again, in this case it was 0.9%.
The variation of the Consumer Price Index in June was -0.18% with respect to May, placing the accumulated inflation in the semester from January to June at 1.17%, informed the Central Bank of the Dominican Republic.
During June, the Consumer Price Index reported a 5.6% year-on-year variation, an inflationary rhythm that is lower than the 6% registered in May.
From the Central Bank of Nicaragua report:
The June Consumer Price Index (CPI) showed a 0.09 percent monthly increase (0.44% in June 2018), mainly explained by the behavior of prices in some goods and services of the Food and non-alcoholic beverages divisions (0.63%); Restaurants and hotels (0.60%); and Diverse goods and services (0.74%); which together contributed 0.333 percentage points to the observed variation. On the other hand, the division of Recreation and culture showed a 4.37 percent decrease, for a negative contribution of 0.167 percentage points.
After registering a 4.5% year-on-year variation in the Consumer Price Index in May, in June the inflationary rhythm rose to 4.8%.
The most important inflation levels in June 2019 are as follows: 0.83% monthly inflation, 4.80% inflationary rhythm and 3.17% accumulated inflation, reported the National Statistics Institute.
The quintal of white corn has become 10% more expensive in the last two weeks in Guatemala, a rise that is explained by the decrease in supply that derives from last year's low harvests.
The Price Report of the Planning Directorate of the Ministry of Agriculture, Livestock and Food (Maga) states that between June 6 and 19, the price of a quintal of white corn went from $19.35 to $20.45.
Since June 1, there has been a 3% increase in the average selling price to the final consumer in the country, going from the cost per megawatt of $219.8 reported in March to $226.5 from this month.
The increase was officialized in La Gaceta on June 18 and the new price per megawatt is applied to each tier that makes up the tariff sheet, which includes residential, commercial, industrial and irrigation tariffs.
In Costa Rica, the price indexes for buildings and social housing registered year-on-year variations of -0.5% and -0.05%, respectively, in the fifth month of the year.
From the National Institute of Statistics and Census statement:
The price indexes for February 2012 construction base are a set of twenty statistical indicators, which measure the variation in the prices of materials used in the construction of different types of works.
Between April and May of this year, the inflationary rhythm grew from 4.9% to 5.1%, mainly because of variations in the prices of fuels, some services and certain foods.
From the Central Bank of Honduras report:
The items with the highest contribution to monthly inflation were: "Housing, Water, Electricity, Gas and Other Fuels" with 0.09 percentage points (pp); followed by "Transport" and "Food and Non-Alcoholic Beverages" with 0.08 pp, each and "Clothing and Footwear" with 0.04 pp (together contributing 80.6% to monthly inflation). Likewise, the groups "Personal Care" and "Furniture and Household Maintenance Items" each contributed less, with 0.02 pp, and "Health", "Recreation and Culture" and "Hotels, Cafeterias and Restaurants" with 0.01 pp, each.
In May, the CPI rose 6%, reinforcing the upward trend that has been reported since February.
In February, the indicator stood at 3.3%, in March it was 5.1% and in April, 5.8%. The May figure reinforces the upward trend that is likely to continue for the rest of the year.
The Consumer Price Index (CPI) for May showed a 0.77% monthly increase (0.55% in May 2018), mainly because of the behavior of prices in some goods and services of the Food and non-alcoholic beverages divisions (1.12%), informed the Central Bank of Nicaragua.
Increases in the electricity, fuel and some food prices caused a 0.92% monthly variation to be reported during the fourth month of the year.
The categories with the highest contribution to monthly inflation were "Housing, Water, Electricity, Gas and Other Fuels" with 0.37%, "Transportation" with 0.21% and "Food and Non-Alcoholic Beverages" with 0.16% -concentrating 80.4% of the total-, likewise, the groups "Personal Care", "Furniture and Articles for Home Maintenance" and "Clothing and Footwear" contributed in less proportion, informed the Central Bank of Honduras (BCH).
During the third month of the year, the CPI registered a 1.82% monthly variation, mainly because of the prices of alcoholic beverages and tobacco.
In cumulative terms, domestic inflation was 1.84%, year-on-year inflation was 5.09%, 0.25% higher than in March 2018, while base year-on-year inflation was 5.25% (4.20% in March 2018), reported the Central Bank of Nicaragua (BCN).
In Costa Rica, the price indexes for buildings and social housing registered 2.8% and 1.9% year-on-year variations in the first month of the year, respectively.
From the statement of the National Institute of Statistics and Census:
The price indexes for construction based on February 2012 are a set of twenty statistical indicators, which measure the variation in the prices of materials used in the construction of different types of works.
After reporting in December 2018 a 2.1% inflation, it is foreseen that this year the inflationary rhythm of the country could range between 2% and 2.6%.
The Central Bank of Costa Rica (BCCR) presented its inflation projections for the current year, in which is contemplated the expected effect of the international price of hydrocarbons as well as the impact of the entry into force of the value added tax.
In December, the FAO food price index fell 4% compared to the same month in 2017, explained by the decline in prices of meat, dairy products, vegetable oils and sugar.
From FAO's monthly report:
The FAO Food Price Index* (FFPI) averaged 161.7 points in December 2018, nearly unchanged from its November value as lower dairy and sugar quotations were largely offset by firmer cereal prices and somewhat higher prices of meat and oils.
In Panama during May Transportation and Education prices were the items that grew the most, increasing by 3.8% and 3.7% respectively, with respect to 2017.
According to figures from the Office of the Comptroller General of the Republic when comparing the National Urban CPI of May 2018, with its similar figure for 2017, the following increases were observed: Transportation 3.8%; Education 3.7%, Restaurants and hotels 2.7%, Alcoholic beverages and tobacco, and Health both 1.3%, Miscellaneous goods and services 1.2%, Housing, water, electricity and gas with 0.8%, and Recreation and culture 0.3%