The variation of the CPI reported during December 2018, was determined by the behavior of prices of Transport and Food and alcoholic beverages.
The National Institute of Statistics and Census reported that, during December, the goods and services showing the greatest positive effect are: tourist packages, subscription television and internet service. On the other hand, gasoline, airfare and liquefied gas were among the main with the greatest negative effect.
Price per gallon of regular gasoline: Costa Rica $3.94, Nicaragua $3.35, Honduras $3.27, El Salvador $2.78, Guatemala $2.78 and Panama $2.64.
From the report of the Ministry of Economy of El Salvador:
The latest report from 2018, provided by the International Energy Agency (AIE) reports that gasoline reserves experienced a significant increase of slightly more than 3.0 million barrels per week against expert forecasts that predicted a minimum increase of just 50,000 barrels per week. Also, distillates such as diesel, kept their production rate and was almost invariable its trend with respect to the previous week, as it only increased 2,000 barrels in the week, against an expectation of a 500 thousand barrels reduction, which despite the favorable environment for the reduction of such a derivative of oil along with heating, its stability allows prices to be downward, along with those of gasoline.
Price per gallon of regular gas: Costa Rica $3.94, Nicaragua $3.38, Honduras $3.36, El Salvador $2.86, Guatemala $2.82 and Panama $2.64.
From the report of the Ministry of Economy of El Salvador:
The current reference prices keep a clear downward trend, because of the oversupply provided by the three largest producers of oil and its derivatives, which represent 40% of world production.
In the eleventh month of the year, the consumer price index registered a monthly variation of 0.42%, mainly because of the positive effect of the prices of airline tickets and domestic services.
From the report of the National Institute of Statistics and Censuses of Costa Rica:
In November 2018, the general index level was 104.303, compared to 103.864 in the previous month.
In November, the FAO Food Price Index fell 8% compared to the same month in 2017, caused by lower prices for meat, dairy products, cereals and sugar.
From FAO's monthly report:
» The FAO Food Price Index* (FFPI) averaged 160.8 points in November 2018, down 2.1 points (1.3 percent) from October, the lowest since May 2016, and nearly 15 points (8.5 percent) below its level in the corresponding period last year.
Price per gallon of regular gasoline: Costa Rica $3.93, Nicaragua $3.55, Honduras $3.48, El Salvador $2.97, Guatemala $2.92 and Panama $2.77.
From the Ministry of Economy of El Salvador report:
During the last two months, the oil and its derivatives production has reached higher figures than expected, this is because the two largest producers, the United States and Saudi Arabia, have recorded figures never seen before.
Estimating how much customers would pay if they bought from a competitor and defining how the product offered differs from others are some of the strategies used to help increase sales profitability.
Ariel Banos, specialist in price management and founder of Fijaciondeprecios.com, explains how through the "umbrella strategy" companies can stop using discounts as the only selling tool.
Price per gallon of regular gas: Costa Rica $4.11, Nicaragua $3.83, Honduras $3.66, Guatemala $3.17, El Salvador $3.16 and Panama $2.98.
From the report of the Ministry of Economy of El Salvador:
The latest production and export reports from the United States and Saudi Arabia have provided international price relief for oil and its products. The North American country, through the International Energy Agency (IEA), reported that in the last week it reached a maximum production of 11.6 million barrels a day (100 thousand barrels more than two weeks ago) due to unconventional production (shale). While the Arab country, the largest producer of the Organization of the Petroleum Exporting Countries (OPEC), reported an increase of approximately 127 thousand barrels more to 10.8 million barrels per day, which has led to an excess in supply over current demand for fuels.
In the tenth month of the year, the price indexes for buildings and social housing registered 3.2% and 2.4% year-on-year variations, respectively.
From the statement of the National Institute of Statistics and Census:
The price indexes for construction base February 2012 are a set of twenty statistical indicators, which measure the variation in the material prices used in the construction of different types of projects.
After a 2.2% year-on-year inflation was reported in September, during October the inflationary rate was reduced to 2%.
From the report of the National Institute of Statistics and Censuses of Costa Rica:
From the 315 goods and services that are part of the consumption basket, 51% increase in price, 36% decreased in price and 13 % did not present variation.
Price per gallon of regular gas: Costa Rica $4.11, Honduras $3.84, Nicaragua $3.79, El Salvador $3.37, Panama $3.32 and Guatemala $3.29.
From the report of the Ministry of Economy of El Salvador:
The production increase of the three major exporters of petroleum and its products at the end of October 2018 has contributed to the fall in international prices; the United States have produced approximately 11.5 million barrels per day, 500 thousand barrels more than its average production; Russia 11.3 million barrels per day, expecting to reach 11.4 million barrels per day in the next weeks; while Saudi Arabia produces an average of 10.7 million barrels per day, with expectations of increasing to 11 million barrels per day. With this increase in production, the International Energy Agency (IEA) has expressed that the oil markets seem " suitably supplied for now," and with a lower expectation in the demand for petroleum and products for 2019.
In September, the FAO food price index decreased 7% compared to the same month in 2017, because of lower prices for meat, dairy products, cereals, vegetable oils and sugar.
From FAO's monthly report:
» The FAO Food Price Index* (FFPI) averaged 163.5 points in October 2018, down 1.4 points (0.9 percent) from September and some 13 points (7.4 percent) below its level in the corresponding period last year.
Arguing that the predictions suggest that inflation in 2019 could be above the upper limit of the target range, the Central Bank of Costa Rica decided to raise the monetary policy rate from 5% to 5.25%.
From the statement of the Central Bank of Costa Rica:
November 1st, 2018. The Board of Directors of the Central Bank of Costa Rica (BCCR), in the session of October 31st, 2018, decided to increase the monetary policy rate (TPM) by 25 basic points to 5.25% annually. The Board of Directors also agreed to increase the gross interest rate on one-day deposits (DON) by 19 basis points to 3.23% annually. Both increases are in effect from November 1st, 2018.
Price per gallon of standard gasoline: Costa Rica $4.21, Nicaragua $4.07, Honduras $3.87, El Salvador $3.56, Guatemala $3.52 and Panama $3.21.
From the report of the Ministry of Economy of El Salvador:
According to data from the IEA, the United States is in full season of hurricanes and the passing of Hurricane Michael through the Gulf of Mexico, on the production of crude oil and derivatives, generated losses in the two days of closure of the storm that represented about 9% of U.S. production of 11.1 million barrels per day. Making the reference prices for gasoline and distillates will present mixed fluctuations.
Only a few companies are aware of the true impact of a proper strategy and price management on the profitability of the organization.
Ariel Baños, pricing specialist and founder of Fijaciondeprecios.com, explains why it is critical for organizations to control the variable with the most impact on their results, and details the five reasons for implementing a pricing area in companies: