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 the second month of the year, the Consumer Price Index registered a 3.99% year-on-year variation, a rise that was determined in part by the behavior of the prices of education services, hotels and restaurants.
From the Central Bank of Honduras report:
The monthly behavior of the CPI was determined by the contribution of the item "Education" with 0.51 percentage points (pp), together with the items "Recreation and Culture" and "Hotels, Cafes and Restaurants" with 0.04 pp, each. On the contrary, "Transportation" contributed -0.18 pp to the monthly inflation.
The variation in the price of some foods of agricultural origin, transport and health, determined the 4.08% year-on-year increase in the CPI reported in December last year.
In December 2019, the Consumer Price Index (CPI) showed a 0.42% variation (0.19% in December 2018), reflecting the price increase in some foods of agricultural origin, transport and health.
Food and Non-Alcoholic Beverages was the expenditure item that most contributed to the 4.7% year-on-year variation reported during the seventh month of the year.
From the Central Bank of Honduras report:
In July 2019, the monthly variation of the Consumer Price Index (CPI) was 0.27%, lower than the observed twelve months ago (0.38%); the monthly result is mainly due to the increase in the prices of some foods, personal care items and medicines.
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.
Reported prices for electricity, fuel, some household items and clothing caused much of the monthly change in the CPI recorded in the third month of the year.
From the Central Bank of Honduras report:
In March 2019, the monthly growth of the Consumer Price Index (CPI) was 0.40%, mainly because of the increase in the prices of electricity supply, fuel, some household items and clothing.
During the first month of the year, the rise in the consumer price index was caused by the behavior of the Water and Electricity Supply and Rental Divisions.
The Consumer Price Index (CPI) registered a 0.03% monthly variation in January 2019, the lowest observed in that month since 2016, informed the Central Bank of Honduras.
In December, the CPI recorded a slight monthly change of 0.2%, because of rising prices of clothing, rental housing, electricity and some medicines.
From the Report of the Central Bank of Honduras:
The Consumer Price Index (CPI) showed a monthly variation of 0.19% in December 2018, same that was lower to the observed in December 2017 (0.65%), linked to the increase in prices of clothing, housing rent, electricity supply and some medicines, being partly compensated by the reduction in the prices of fuels and some perishable foods. While the year on year inflation was at 4.22%1 (4.73% twelve months ago).
The consumer price index registered a monthly variation of 0.56%, due to the increase in the prices in the divisions of Housing, Water, Electricity, Gas and Other Fuels.
From the Central Bank of Honduras Report:
In October 2018, the Consumer Price Index (CPI) presented a monthly variation of 0.56%, mainly due to higher prices in electrical energy, fuels, some perishable foods and clothing.
The consumer price index registered a slight monthly variation of 0.03%, due to the increase in the prices of housing rent and some personal care items.
From the Central Bank of Honduras Report:
In September 2018, the Consumer Price Index (CPI) showed a monthly variation of 0.03%, due to the increase observed in the price of housing rents, some personal care items, food consumed in restaurants, furniture and household appliances, which was almost compensated by the negative variation reflected in the national average prices of some agricultural perishable foods. As a result, the accumulated inflation up to September 2018 was 2.90%, lower than the same period of 2017 (3.24%), while the inter-annual inflation was 4.38% (3.66% twelve months ago), remaining within the tolerance range of 4.0% ± 1.0 percentage points, set in the revision of the 2018-2019 Monetary Program.
The consumer price index recorded a monthly variation of 0.44%, due to an increase in the prices of urban passenger transport and some items of clothing.
From a report by the Central Bank of Honduras:
In August 2018, the Consumer Price Index (CPI) showed a monthly variation of 0.44%, mainly determined by higher prices in urban passenger transport, as well some items of clothing.
The consumer price index registered a monthly variation of 0.38%, due to an increase in the prices of perishable foods and those prepared in restaurants.
From a report by the Central Bank of Honduras:
In the seventh month of the year there was accumulated inflation of 2.42%, which denotes lower inflationary pressures than those observed in July 2016 (2.58%) and 2017 (2.90%), while year-on-year inflation stood at 4.23% (3.64% twelve months ago).
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.
The consumer price index registered a monthly variation of 0.41%, due to an increase in the prices of fuels, and some foods.
From a report by the Central Bank of Honduras:
The monthly variation of the Consumer Price Index (CPI) in June of this year was 0.41%, driven mainly by higher prices of fuels, some foods and household items.
The consumer price index registered a monthly variation of 0.10%, due to an increase in the prices of accommodation, water, electricity, gas and other fuels, and transportation.
From a report by the Central Bank of Honduras:
The Consumer Price Index recorded a monthly variation of 0.10% in May 2018, mainly associated with an increase in fuel prices; It should be noted that this behavior was partially offset by a negative variation in the prices of some foods.