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.
During February in the country the CPI reported -0.3% year-on-year variation, which is partly explained by the behavior of the prices of the transport category.
The groups that showed decreases in the National Urban CPI for February compared to January 2020 were: Transportation with 1.3%, Food and non-alcoholic beverages with 0.8%, Recreation and culture with 0.4%, Communications with 0.3%, Alcoholic beverages and tobacco, clothing and footwear, and Health all with 0.1%, reported the General Comptroller of the Republic.
At the beginning of 2020 in Panama, a positive variation in the Consumer Price Index was reported, a behavior that was determined partly by the prices of Transportation and Alcoholic Beverages and Tobacco.
From the report of the General Comptroller of the Republic:
The groups showing an increase in the National Urban CPI of January 2020, as compared to December 2019 were: Housing, water, electricity and gas with 0.6%; Transportation with 0.5%; Alcoholic beverages and tobacco, Education and Diverse goods and services all with 0.3%; Health and Restaurants and hotels both with 0.1%.
At the end of 2019, Panama reported a negative variation in the Consumer Price Index, a behavior that was determined partly by the prices of air passenger transport.
From the report of the General Comptroller of the Republic:
The groups that presented decreases in the National Urban CPI of December, with respect to November 2019 were: Transportation with 0.5%; Furniture, home articles and ordinary home maintenance, and Recreation and culture both with 0.4%; Alcoholic beverages and tobacco with 0.2%; Food and non-alcoholic beverages, and diverse goods and services both with 0.1%.
In June, the consumer price indexes in all of the countries in the Central American region recorded year-on-year increases in the transport spending division.
According to a report from the Central American Monetary Council, in June of this year, Nicaragua was the country that reported the highest year-on-year increase in the price level of transportation services, registering an increase of 9.8% compared to the same month in 2018.
In December, the consumer price index declined by 0.4% compared to November, placing the annual inflation rate at the close of 2014 at 2.6%
From a statement issued by the National Institute of Statistics and Census of Panama:
The Consumer Price Index (CPI) in December compared with November 2014, recorded a low of 0.4% for both the National Urban Area and for the districts of Panama and San Miguelito, while for the Other Urban Areas it was 0.5%.
In September the consumer price index recorded a rise of 0.3%, with the categories of Health and Food and Beverages increasing the most.
From a statement issued by the National Institute of Statistics and Census of Panama:
The Consumer Price Index (CPI) in September compared to August 2014, showed an increase of 0.3% for both the National Urban Area and for the districts of Panama and San Miguelito and Other Urban Areas.
Compared with April prices rose 0.1%, and the sectors of education, food and beverages, health and household furniture and equipment showed the greatest increases.
From a report issued by the Comptroller General of the Republic of Panama:
The Consumer Price Index (CPI) in May, compared to April 2014, there was an increase of 0.1 percent for both the National Urban and for the districts of Panama and San Miguelito and Other Urban.
In March the consumer price index rose by 0.4% from February, with the Health, Transport and Food and Beverage segments increasing the most.
A statement from the National Institute of Statistics and Census of Panama:
The Consumer Price Index (CPI) in March compared to February 2014 showed an increase of 0.4 percent in the National Urban area, 0.3 percent for the districts of Panama and San Miguelito and 0.6 percent in the Other Urban areas.
The Consumer Price Index in May 2013 registered a monthly increase of 0.4%, while in the first five months of the year the increase was 2.3%.
From information published by the Comptroller General of the Republic of Panama:
The Consumer Price Index (CPI) in May compared to April of 2013 showed an increase of 0.4%, both in the National Urban category, and for the Other Urban category, while for the districts of Panama and San Miguelito, it was 0.3%. Compared to May 2012, there was an increase of 3.7% in both the National Urban, and the districts of Panama and San Miguelito and Other Urban areas. So far this year, the National Urban CPI reflected a cumulative variation of 2.3%.