Inflation rates | proyecto

INFLATATION RATES:

Inflation is the increase in the general level of prices represented with a percentage, for goods and services in a certain period of time.

Inflation has several effects on the Colombian economy; the positive effects are that nominal interest rates can be adjusted by the bank of the republic to minimize a recession, encouraging investment in projects of non-monetary capital. And the negatives are that the decline in the real value of the Colombian peso over time, can discourage savings and investment because there is uncertainty about the future value of the Colombian peso.

It is measured by the consumer price index (IPC) which represents the cost of a representative basket of goods and services of a domestic economy.

We can appreciate in the graphs that the inflation during the years 2011 to 2014 was very moderate and low, but in 2015 it had a high growth, increasing by 3,11%. Despite this, in 2016 and early 2017 inflation un Colombia has been declining, reaching a more stable rate.

Our economy also is afected by agricultural strikes, "El paro camionero dejó de ser un asunto sectorial y se ha convertido en una manifestación con relevancia y trascendencia nacionales. El consumidor colombiano está pagando los platos rotos: en el mes que lleva, la inmovilización de los transportadores ha afectado el suministro natural de productos en las diferentes ciudades, provocando un incremento en los precios de los artículos perecederos, como frutas y verduras."

Our Company can be affected by the inflation, because as shown in the graph the group of food and non-alcoholic beverages over time has had a fairly high growth in Colombian inflation, when this happens the costumers will decrease the demand of our product and will replace their consumption for another beverage.

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