Last month FAO's food price index rose 10% from November 2018, explained by rising prices of meat, dairy products and vegetable oils.
From FAO's monthly report:
» The FAO Food Price Index* (FFPI) averaged 177.2 points in November 2019; up 4.7 points (2.7 percent) from October and 15.4 points (9.5 percent) from the corresponding period last year.
Price per gallon of regular gasoline: Costa Rica $4.12, Nicaragua $3.52, Honduras $3.45, El Salvador $3.07, Guatemala $3.05 and Panama $2.86.
From the Ministry of Economy of El Salvador statement:
The current reference prices present combined variation for gasoline and diesel; this trend responds to the economic conflict between the largest producer of oil and derivatives (United States) and the largest consumer of the same (China) that has extended for 16 months. The United States has scheduled for next December 15, a 15% increase in tariffs on Chinese products for a value of US$160 billion dollars, generating uncertainty in the international hydrocarbons market. Therefore, if such an increase is imposed, the demand for oil derivatives could decrease, generating an oversupply.
Convincing the sales team that the increase in the price of the product is necessary, and that they are able to convey the message to customers correctly, is essential when it comes to increasing prices when production costs rise.
Ariel Banos, specialist in price management and founder of Fijaciondeprecios.com, explains five strategies to increase product prices successfully, maintaining profitability and ensuring the viability of the company in the face of rising costs.
Price per gallon of regular gasoline: Costa Rica $4, Nicaragua $3.56, Honduras $3.44, El Salvador $3.06, Guatemala $3.06 and Panama $2.86.
From the Ministry of Economy of El Salvador statement:
The current reference prices show their second consecutive decline in gasoline and diesel for the current fortnight, these decreases are the result of the increase in U.S.
In the tenth month of the year, the FAO food price index rose 6% from October 2018, explained by rising prices of sugar, meat, dairy products and vegetable oils.
From FAO's monthly report:
» The FAO Food Price Index* (FFPI) averaged 172.7 points in October 2019, up 1.7 percent (3 points) from September and 6.0 percent higher than in the corresponding period last year. The increase in October marked the first significant month-on-month rise in the value of the Index since May 2019, as surges in the prices of sugar, cereals and, to a lesser extent, meat and vegetable oils, more than offset a small decline in the value of the dairy sub-index.
Price per gallon of regular gasoline: Costa Rica $3.86, Nicaragua $3.53, Honduras $3.41, El Salvador $3.06, Guatemala $3.05 and Panama $2.83.
From the Ministry of Economy of El Salvador:
The current reference prices are low for gasoline and diesel nationally, this responds to the latest weekly report of oil reserves provided by the IEA, which reported a 5.07-million-barrel increase, well above the forecast of experts who predicted a superficial growth of just 500 thousand barrels per week. This generates continuity of raw material for petroleum products, even though gasoline reserves decreased 3.04 million barrels and diesel 1.03 million barrels per week.
Price per gallon of regular gasoline: Costa Rica $3.88, Nicaragua $3.53, Honduras $3.44, El Salvador $3.08, Guatemala $3.04 and Panama $2.83.
From the Ministry of Economy of El Salvador statement:
The current reference prices present combined variation for gasoline and downward variations for diesel; this trend responds to a first partial agreement between the largest producer (United States) and the largest consumer (China) of oil and oil products worldwide. Last October 11, the tariff increase was suppressed that was maintained for a value of US$250,000 million and were scheduled to rise from 25% to 30% to several Chinese products, which generated an expectation of increased demand among investors and producers in the hydrocarbon market.
Price per gallon of regular gasoline: Costa Rica $3.86, Nicaragua $3.62, Honduras $3.45, El Salvador $3.11, Guatemala $3.14 and Panama $2.89.
From the Ministry of Economy of El Salvador statement:
The current reference prices present their second consecutive increase in the prices of gasoline and diesel. This rise is because of the caution that exists due to the resumption of negotiations between the United States and China, scheduled for October 11 and 12, which generates uncertainty between investors and producers, as it is an agreement between the largest producer and the largest consumer of oil and oil products worldwide.
In the ninth month of the year, the FAO food price index increased by 3% compared to September 2018, explained by the rise in the prices of sugar, meat, dairy products and vegetable oils.
From FAO's monthly report:
» The FAO Food Price Index* (FFPI) averaged nearly 170 points in September 2019, unchanged from August but 3.3 percent higher than in the corresponding period last year. While in September sugar prices fell sharply, the decline was almost entirely offset by higher prices of vegetable oils and meat. The Dairy index was down only marginally, whereas that of cereals remained steady.
If the international prices of bananas, coffee, sugar and palm oil do not improve, and if combined with a global economic recession, Guatemala, Honduras and El Salvador could stop exporting as much as $2.268 million altogether in 2021.
According to the report "Proceso de integración Centroamericana del Triángulo Norte: Escenarios de riesgo en la matriz de exportación" (Central American Integration Process of the Northern Triangle: Risk Scenarios in the Export Matrix), prepared by the Asociación de Investigación de Estudios Sociales (Asíes), garment making is another activity that could be affected in the coming years.
Price per gallon of regular gasoline: Costa Rica $3.98, Nicaragua $3.62, Honduras $3.39, El Salvador $3.06, Guatemala $3.04 and Panama $2.88.
From the Ministry of Economy of El Salvador:
The current reference prices present their third consecutive decline in gasoline prices and without any variation for low-sulfur diesel, this is because of the trade conflict between the United States and China, the largest consumers of oil and derivatives worldwide. On September 1, both nations-imposed tariffs on different products, the U.S. country for a value of US$300 billion, while China imposed tariffs of US$75 billion on different products, which highlights the 5% tax on oil and its derivatives. Because of these measures, international prices tended to fall, for fear of a fall in world demand.
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.
In the eighth month of the year, the FAO food price index fell 2% from July 2019, explained by the decline in the prices of sugar and main cereals.
From FAO's monthly report:
» The FAO Food Price Index* (FFPI) averaged 169.8 points in August 2019, down 1.1 percent (almost 2.0 points) from July but still 1.1 percent higher than in August 2018.
Price per gallon of regular gasoline: Costa Rica $4.44, Nicaragua $3.61, Honduras $3.44, El Salvador $3.12, Guatemala $3.09 and Panama $2.93.
From the Ministry of Economy of El Salvador statement:
The reference prices for gasoline and diesel add their second consecutive decline for the current fortnight, the reductions are because of increases in production and refining by U.S.
Price per gallon of regular gasoline: Costa Rica $4.38, Nicaragua $3.78, Honduras $3.53, El Salvador $3.21, Guatemala $3.24 and Panama $3.03.
From the Ministry of Economy of El Salvador statement:
The reference prices for gasoline and diesel present important declines for the current fortnight, although the United States for several weeks had reflected losses in its reserves, in the last weekly report provided by the IEA, it is reported that increased its oil products and derivatives. Oil increased by 2.4 million barrels after 7 weeks of losses. Likewise, gasoline increased 4.4 million barrels, after two weeks of losses, together with distillates, such as diesel, showed a 1.5-million-barrel increase. The changes in reserves allowed international prices of oil derivatives to show a downward trend.
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2224