Fifteen months after the beginning of the health and economic crisis, Guatemala, Honduras and Nicaragua are the economies in the region with the highest inflation rates, a behavior that was influenced by increases in fuel and transportation costs.
In the second quarter of 2020, a period in which the countries of the region were going through a severe economic crisis caused by the Covid-19 outbreak, inflation levels were low and in some economies negative variations were reported.
Discounts and offers, increase in the price level generally and the rise in operating costs due to new health and safety protocols are the main threats to the profitability of companies in this new commercial reality.
Given this context of economic and health crisis, which derives from the outbreak of covid-19 at the global level, Ariel Baños, a specialist in price management and founder of Fijaciondeprecios.com, explains what are the main threats that could affect the profitability levels of companies, and details some strategies that could be applied to mitigate the adverse effects.
In the second month of the year the CPI registered a 1.79% year-on-year variation, an inflationary rhythm that exceeds the 1.58% reported in January.
Of the 315 goods and services that make up the consumption basket, 50% increased in price, 41% decreased in price and 9% presented no variation, informed the National Institute of Statistics and Census.
During January, the Consumer Price Index registered a 1.58% year-on-year variation, a rise that was influenced by the increase in the prices of Rent and housing services, and Education.
Out of the 315 goods and services that make up the consumer basket, 48% increased in price, 44% decreased in price and 8% showed no variation, reported the National Institute of Statistics and Census.
After the Consumer Price Index reported a 2.03% year-on-year variation at the end of 2018, in December 2019 the inflationary rhythm dropped to 1.52%.
The groups with greater contribution to the variation of the CPI in December 2019 were: Food and non-alcoholic beverages and Transportation, reported the National Institute of Statistics and Census (INEC).
In Costa Rica, the inflationary rhythm slowed for the fourth consecutive month, as in November the CPI reported a year-on-year variation of 1.86%, below the 2.07% reported in October.
During November, the goods and services that showed the greatest positive effect were: onion, gasoline and tourist packages. On the other hand, automobiles, papaya and tomatoes were among the main ones with the greatest negative effect, informed the National Institute of Statistics and Census.
After lowering the rate six times between January and October of this year, in its last review the Central Bank of Costa Rica decided to maintain it at 3.25%, because the inflationary rate registers a significant slowdown.
The last reduction made to the Monetary Policy Rate (MPR) was at the end of October, when the Central Bank of Costa Rica (BCCR) reduced it from 3.75% to 3.25%, arguing that the reduction would support the incipient economic recovery process shown by production indicators.
The inflationary rhythm slowed for the third consecutive month, as in October the CPI reported a 2.07% year-on-year variation, below the 2.53% reported in September.
The groups with the greatest contribution to the variation of the CPI in October are: Transport, and Food and non-alcoholic beverages. Of the 315 goods and services that make up the consumption basket, 49% increase in price, 40% decreased in price and 11% showed no variation, informed the National Institute of Statistics and Censuses.
In September, the Consumer Price Index reported a 2.5% year-on-year variation, down from 2.9% in August.
Of the 315 goods and services that make up the consumption basket, 50% increase in price, 39% decreased in price and 11% showed no variation, reported the National Institute of Statistics and Censuses.
The official report explains that "... During September, the goods and services showing the greatest negative effect are: gasoline, potato and tomato. On the other hand, automobiles, canned tuna and papaya were among the main ones with the greatest positive effect.
In August, the Consumer Price Index in Costa Rica reported a 2.9% inter-annual variation, a rise that is partly explained by the behavior of the prices of Food and non-alcoholic beverages, and Clothing and footwear.
Of the 315 goods and services that make up the consumption basket, 52 % increased in price, 41 % decreased in price and 7 % showed no variation, informed the National Institute of Statistics and Censuses.
Avoiding hurried discounts, managing price increases according to costs and improving cash flow are some of the strategies that companies can resort to protect their profitability in contexts of inflation and recession.
Ariel Baños, a price management specialist and founder of Fijciondeprecios.com, explains four strategies for maintaining profitability when companies face scenarios of rising prices and low dynamism in economic activity.
During July in Costa Rica, the Consumer Price Index reported a 2.9% year-on-year variation, a rise that is partly explained by the behavior of food and non-alcoholic beverage prices.
Of the 315 goods and services that make up the consumption basket, 61% increased in price, 35% decreased in price and 4% showed no variation, reported the National Institute of Statistics and Censuses.
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.
Out of the 315 goods and services that make up the consumption basket, 52% increased in price, 36% decreased in price and 12% showed no variation.
Of the 315 goods and services that make up the consumption basket, 52 % increased in price, 36 % decreased in price and 12 % showed no variation, informed the National Institute of Statistics and Censuses (INEC).
After the year-on-year variation of the Consumer Price Index between January and March of this year will range between 1.4% and 1.7%, and during April inflation was 2.1%, in May the inflationary rhythm rose to 2.3%.
The groups with the greatest contribution to the variation of the CPI in May were: Transport and Entertainment and culture, explains the report of the National Institute of Statistics and Censuses (INEC).